Company Number: 12929989

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bendall's Boxing Limited is a micro private limited company with modest asset size and net asset growth over the last two years. The company shows improving net assets from £3,314 in 2023 to £5,627 in 2024, indicating some positive financial development. However, the company consistently reports negative net current assets (working capital deficits of £6,379 in 2024 and £7,443 in 2023), signaling liquidity constraints. Given the small scale, limited cash buffer, and negative working capital, credit approval should be conditional on close monitoring of cash flow and short-term liabilities. The absence of profit and loss details limits assessment of profitability and operational cash generation, which warrants caution.

2. Financial Strength:
   The company’s balance sheet is very small but stable in terms of net assets, which increased by approximately 70% year-on-year. Fixed assets represent a significant portion (£12,606) relative to current assets (£3,714), reflecting a capital-intensive or equipment-heavy business model for its size. The equity base is low at £5,627 but positive, indicating solvency. However, the persistent negative net current assets highlight that short-term liabilities exceed current assets, posing liquidity risks. No long-term debt is reported, which reduces gearing risk.

3. Cash Flow Assessment:
   Current liabilities of £10,093 exceed current assets of only £3,714, resulting in a working capital deficit. This suggests potential cash flow pressure to meet short-term obligations. The company employs one person, indicating low operating overheads, but without profit and cash flow statements, it is unclear if operating cash generation covers these liabilities. The director’s report notes exemption from audit and small company filing, so full financial transparency is limited. Management should demonstrate ability to convert fixed assets or secure short-term funding to cover working capital needs.

4. Monitoring Points:

• Working capital and liquidity ratios: to ensure the company can meet short-term debts.
• Profitability and operating cash flow trends once profit & loss accounts are available.
• Changes in fixed assets and capital expenditure to assess investment and asset utilization.
• Director and shareholder changes or any additional funding injections.
• Timely filing of accounts and confirmation statements to maintain transparency.