Company Number: 12843320

Analysis Date: 2025-07-20 16:00 UTC

1. Credit Opinion: APPROVE

Approachline (W1H) Ltd. demonstrates a solid financial position with improving net current assets and shareholders' funds over the last three years. The company is active, compliant with filing deadlines, and operates within a stable industry (public houses and bars). There is no indication of insolvency or distress, and the directors are in place with no adverse conduct records. Although the company is relatively young (incorporated 2020), its financial trajectory shows growth and stronger liquidity, supporting credit approval.

2. Financial Strength:

• Shareholders' funds increased from £293k in 2021 to £601k in 2024, reflecting retained earnings growth and a strengthening equity base.
• Total assets less current liabilities rose from £293k in 2021 to £601k in 2024.
• Tangible fixed assets decreased slightly from £262k to £220k between 2023-24 but remain substantial.
• The company has a modest share capital of £200, indicating equity mainly built through retained profits.
• The balance sheet shows no long-term debt disclosed, which reduces financial risk.

3. Cash Flow Assessment:

• Cash reserves increased significantly from £437k (2021) to £776k (2024), indicating strong cash generation or capital injections.
• Current assets are £920k against current liabilities of £540k in 2024, providing a comfortable current ratio (~1.7x).
• Net current assets improved to £380k, supporting good short-term liquidity.
• Debtors have decreased from £163k (2023) to £102k (2024), suggesting efficient collection.
• Creditors owed to group undertakings represent a significant portion (£415k), implying intra-group funding reliance but manageable given cash levels.

4. Monitoring Points:

• Watch the debtor turnover and aging, as a decrease occurred recently; continued efficient collections will support liquidity.
• Monitor the creditors to group undertakings to assess any increasing reliance on related party funding.
• Keep track of tangible fixed assets and capital expenditure to ensure asset base supports operations without overextension.
• Track employee numbers (reduced from 42 to 19) to understand operational scale and cost control.
• Review profitability trends when available since profit and loss details are not currently disclosed.