Company Number: 13396146

Analysis Date: 2025-07-19 11:51 UTC

Credit Opinion:
APPROVE with caution. Annabel Royden Design Limited is a small, privately held interior design business showing stable net asset levels and positive working capital. The company has no overdue filings and appears compliant with statutory requirements. However, the modest scale of operations, reliance on a single director, and modest retained earnings suggest careful monitoring is advisable.

Financial Strength:
The company’s balance sheet shows net assets of £14,823 as of 31 May 2024, down slightly from £15,564 the previous year. Total current assets stand at £44,620, predominantly cash (£44,381), with minimal trade debtors (£239). Current liabilities increased to £32,056, resulting in a positive net current asset position of £12,564. Fixed assets are minimal (£2,798 net), reflecting the nature of the business. Shareholders’ funds are low but positive, indicating modest capitalization and retained earnings of £14,813. The company qualifies as a small entity, with limited financial complexity.

Cash Flow Assessment:
Cash reserves have improved substantially from £19,349 to £44,381 year-on-year, suggesting good liquidity and cash management. Trade debtors have dropped significantly, indicating faster collection or reduced credit sales, supporting cash flow. Current liabilities increased but remain comfortably covered by current assets. The company’s positive working capital and cash position suggest it can meet short-term obligations and service credit facilities.

Monitoring Points:

1. Continued reliance on a single director and employee represents key person risk.
2. Modest retained earnings and net assets warrant monitoring for any erosion that might impact solvency.
3. Watch for changes in trade creditors and debtor balances which could affect liquidity.
4. Monitor business growth and profitability indicators, absent from current filings, to assess future repayment capacity.
5. Ensure timely filing of future accounts and confirmation statements to maintain compliance.