BERNA LTD

Executive Summary

BERNA LTD is a recently established micro-entity with a strong initial financial position characterized by positive net assets and working capital. The company is managed by a sole director/shareholder with clear control and demonstrates sound short-term liquidity. Approval of credit facilities is recommended with standard monitoring of financial performance and cash flow progression.

BERNA LTD - Analysis Report

Company Number: 14787561

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: APPROVE

BERNA LTD is a newly incorporated micro-entity (active private limited company) with a very recent financial year end (April 2024). Despite its infancy, the company demonstrates a positive net asset position (£24,726) and strong working capital (£28,639), indicating adequate short-term liquidity and no immediate solvency issues. The absence of overdraft or significant liabilities, combined with sole director and shareholder control by Miss Berna Suzan Ucel, suggests clear management oversight. While the company is small and early-stage, it shows no signs of financial distress or governance concerns. Approval is recommended but with attention to the company's business development and cash flow trends over the next 12 months.

2. Financial Strength:

• Fixed assets are minimal (£1,983), typical for a consultancy business.
• Current assets (£28,639) consist likely of cash and receivables, sufficient to cover any current liabilities.
• No current liabilities reported, resulting in net current assets equal to current assets.
• Provisions for liabilities of £5,896 reduce total assets less current liabilities to £30,622, but net assets remain positive at £24,726.
• Shareholders’ funds mirror net assets, indicating no outside debt financing.
• The micro-entity status means simplified reporting; no audit required, so detailed financial scrutiny is limited.
• Overall, the balance sheet is clean, with no debt, and positive equity, demonstrating financial stability for a startup.

3. Cash Flow Assessment:

• No detailed cash flow statement provided, but strong net current assets suggest the company holds sufficient liquid resources.
• Operating cash flow is likely positive or neutral given absence of liabilities and positive net assets.
• One employee reported, indicating low overheads.
• Working capital adequacy supports short-term obligations and operational expenses.
• Monitoring cash generation from consulting activities will be essential to confirm ongoing liquidity.

4. Monitoring Points:

• Business growth: Track revenue and profit development to ensure scaling beyond startup phase.
• Cash flow trends: Monitor timely collection of receivables and management of expenses to maintain liquidity.
• Provisions for liabilities: Clarify nature and adequacy of provisions to assess potential risks.
• Director’s management: As sole director and shareholder, governance and decision-making quality should be observed.
• Filing compliance: Ensure timely submission of accounts and confirmation statements going forward.
• Industry risks: As a management consultancy, market demand and competition dynamics should be monitored.