Company Number: 12816586

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Basingstoke Hema Limited demonstrates modest but consistent net asset growth over the last three years, with a healthy positive net asset position of £4,198 as of 31 March 2024. The company is classified as a micro entity, with limited scale and no employees, indicating a small operational footprint. While there is no audit requirement, the accounts appear straightforward and compliant. The directors have solid control, with no adverse records. However, the company’s limited size and current low working capital suggest some vulnerability to cash flow shocks. Credit should be extended cautiously with conditions, such as monitoring liquidity and requesting periodic financial updates.

2. Financial Strength:
   The balance sheet reveals steady improvement from a net asset deficit of £390 in 2020 to positive net assets of £4,198 in 2024. Fixed assets have increased from £430 to £3,411, suggesting some investment in tangible or intangible assets. Net current assets remain positive at £787, though lower than the prior year (1,239), indicating a slight tightening in short-term liquidity. Share capital is minimal (£2), reflecting limited equity funding. Overall, the financial structure is stable but constrained by small scale and modest equity.

3. Cash Flow Assessment:
   Current assets (£2,461) exceed current liabilities (£1,906), yielding a positive working capital position, but the net current asset margin is relatively thin at approximately 41%. The company’s cash and receivables levels are adequate to cover short-term obligations, yet ongoing operational cash generation is unclear due to absence of detailed profit and loss data and no employees. The increase in current liabilities suggests rising short-term obligations that need management focus. Liquidity appears manageable but could be susceptible to delays in collections or unexpected expenses.

4. Monitoring Points:

• Track quarterly cash flow and working capital fluctuations to ensure sustained liquidity.
• Monitor any changes in current liabilities, especially short-term borrowings or trade payables.
• Review operational performance indicators once available to assess revenue and profitability trends.
• Confirm directors maintain prudent financial controls and governance given the micro scale and no audit.
• Ensure timely filing of accounts and returns continues to avoid compliance risks.