Company Number: 13049024

Analysis Date: 2025-07-20 12:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bergs Potter Limited is a relatively young private limited company (incorporated 2020) operating in non-specialised wholesale trade. The company shows a positive trend in net current assets and shareholders’ funds over the last three years, indicating gradual balance sheet strengthening. However, a significant proportion of current liabilities are amounts owed to group undertakings, which suggests reliance on intra-group funding rather than independent cash generation. Approval is conditional on monitoring the company’s ability to reduce intercompany liabilities and strengthen standalone liquidity.

2. Financial Strength:
   The company’s net assets have improved from £7.9k in 2021 to £59.7k in 2024, signaling an improving equity base. The current ratio based on current assets (£243.6k) versus current liabilities (£183.9k) is approximately 1.32, reflecting adequate short-term solvency. The increase in debtors from £106k to £190k alongside stable cash balances (£53k) indicates growing sales or receivables, but also potential exposure to credit risk on customers or group entities. The share capital remains nominal at £1,000, typical for a small private company. Overall, the balance sheet shows moderate financial strength but with dependence on group-related funding.

3. Cash Flow Assessment:
   Cash at bank decreased slightly from £61k in 2023 to £53k in 2024, while current liabilities increased by nearly £51k, largely due to amounts owed to group undertakings rising from £127k to £177k. This suggests that while the company maintains positive working capital (£59.7k), its liquidity is partly supported by related party funding rather than operational cash flows. The absence of external debt and no employee payroll (directors unpaid) reduces financial strain, but cash flow generation from trading is not clearly demonstrated. The company should be monitored for any changes in cash conversion cycles and reliance on group funding.

4. Monitoring Points:

• Trend in debtor days and quality of receivables, especially amounts owed by group undertakings.
• Ability to convert receivables into cash promptly to support liquidity.
• Changes in group funding reliance and whether the company can sustain operations independently.
• Profitability and cash generation in future filings, as current accounts omit profit and loss details.
• Timely filing of accounts and confirmation statements, currently up to date.