Company Number: 12573899

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: APPROVE
   Bio Roots Limited demonstrates a stable and improving financial position with positive net current assets and shareholders’ funds growing from £8,974 in 2020 to £18,633 in 2024. The company maintains adequate liquidity with cash reserves exceeding current liabilities, indicating good capacity to meet short-term obligations. The single director and sole shareholder, Mr. Joseph Adam Fada, appears actively involved with no adverse records, suggesting reliable management stewardship. While the company is small and relatively young, its consistent growth in working capital and absence of overdue filings support a credit approval, subject to routine monitoring.

2. Financial Strength:
   The balance sheet reveals a strong liquidity profile with current assets (£27,572) fully covering current liabilities (£8,939) in 2024, resulting in net current assets of £18,633. Shareholders’ funds have more than doubled over four years, reflecting retained earnings accumulation and business growth. No long-term liabilities or debts are reported, reducing financial risk. The company operates within the micro entity threshold and has minimal fixed assets, typical for its landscaping service activities. Overall, the financial strength is sound with no signs of leverage or solvency concerns.

3. Cash Flow Assessment:
   Cash on hand (£27,572) surpasses current liabilities by a healthy margin, indicating strong liquidity and working capital management. Debtors have been minimal or zero in the latest year, improving cash conversion cycle and reducing credit risk. The company appears to operate on a cash basis or with rapid receivables turnover. Given the low level of creditors (£8,939) relative to cash, there is no immediate strain on operating cash flow. This suggests the company can comfortably service short-term obligations and absorb minor cash flow fluctuations.

4. Monitoring Points:

• Continued tracking of cash flow and working capital to ensure liquidity is maintained as the business grows.
• Monitoring any changes in trade creditors and debtors that may impact cash conversion cycles.
• Observe any new borrowing or off-balance sheet liabilities that could affect financial leverage.
• Keep watch on business expansion or diversification which may increase financial complexity or risk.
• Confirm ongoing compliance with filing deadlines and regulatory requirements.