Company Number: NI686557

Analysis Date: 2025-07-20 19:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AKUMA SIGNS LTD is a young micro-entity with only two years of operating history. The company has shown a significant improvement in net assets from a negative position (-£4,139 in 2023) to a positive £17,614 in 2024, indicating initial growth and strengthening balance sheet. However, its current liabilities exceed current assets, reflecting a working capital deficit, which raises liquidity concerns. Given the small scale and limited financial history, credit approval should be conditional on monitoring cash flow closely and confirming sustained profitability.

2. Financial Strength:
   The balance sheet shows fixed assets growth from £10,928 to £24,538, which suggests investment in plant or equipment to support manufacturing activity. Total net assets improved markedly to £17,614 at 2024 year-end, reversing prior negative equity, a positive sign of shareholder support or retained earnings. No long-term debt is reported, which keeps financial risk low. However, current liabilities (£54,328) remain high relative to current assets (£47,404), resulting in a net current liability position of -£6,924, indicating some short-term funding pressure.

3. Cash Flow Assessment:
   The company’s working capital position is negative, suggesting potential liquidity constraints. With current liabilities exceeding current assets by nearly £7k, there may be pressure to meet short-term obligations without additional financing or improved cash inflows. The small employee base (2 employees) keeps overheads low but revenue generation must be closely monitored. Absence of long-term liabilities reduces fixed obligations but the negative working capital requires active cash flow management.

4. Monitoring Points:

• Monitor quarterly cash flow statements and overdue creditors to ensure liquidity is maintained.
• Track sales growth and margins to verify continued improvement in profitability and cash generation.
• Watch for any increase in short-term borrowings or payment delays that could signal cash flow stress.
• Observe changes in directors’ or shareholders’ funding support, as they currently hold significant control and equity.
• Review updated accounts at next filing to confirm sustained net asset growth and working capital improvement.