Company Number: 12996936

Analysis Date: 2025-07-20 11:54 UTC

1. Credit Opinion: APPROVE
   BLACK LABEL SUPPLY LTD demonstrates a solid and improving financial position with strong net current assets and net assets growth over the last two years. The company is current on its statutory filings, indicating good compliance and management discipline. The substantial increase in current assets and net assets from 2022 to 2023, coupled with controlled liabilities, supports confidence in its ability to meet short-term obligations and service credit facilities.

2. Financial Strength:
   The company is categorized as a micro-entity with a simple balance sheet structure. Net assets have nearly tripled from £68k in 2022 to £195k in 2023, mainly driven by an increase in current assets from £140k to £420k. Current liabilities have increased but remain well covered by current assets, resulting in a strong net working capital position of £227k in 2023. The company does not hold fixed or long-term assets, which is typical for its retail sector. Shareholders’ funds have grown in line with net assets, indicating retained earnings or capital injections supporting equity strength.

3. Cash Flow Assessment:
   The significant rise in current assets, presumably including cash and receivables, enhances liquidity and working capital availability. The company maintains a healthy current ratio above 2:1 and positive net current assets, indicating adequate short-term liquidity to cover debts and operational expenses. The stability in employee numbers suggests controlled overheads. Although detailed cash flow statements are not provided, the balance sheet implies sound cash management and no immediate liquidity risks.

4. Monitoring Points:

• Monitor ongoing growth in current assets to ensure it reflects real cash or collectible receivables rather than inventory build-up that could impair liquidity.
• Keep an eye on the increase in current liabilities and accruals, ensuring they remain manageable relative to current assets.
• Watch for any changes in payment patterns or credit terms with suppliers and customers that may affect working capital.
• Review future accounts for sustained profitability and cash flow generation to confirm continued creditworthiness.
• Confirm no adverse changes in director conduct or control structure that could impact governance or financial stability.