BOILING BLUE LTD

Executive Summary

Boiling Blue Ltd is a newly formed micro-entity with a small but positive net asset base and modest working capital. While current financials show initial stability, the limited operating history necessitates a conditional credit approval with close monitoring of cash flow and trading performance. The company’s low overhead and compliance with filing deadlines are positive indicators for credit risk management.

BOILING BLUE LTD - Analysis Report

Company Number: 14838596

Analysis Date: 2025-07-29 14:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Boiling Blue Ltd is a newly incorporated micro-entity with limited operating history (founded May 2023) and a small asset base. The company shows positive net current assets and modest net equity (£9,342) as of May 2024, indicating initial financial stability. However, limited historical financial data and minimal fixed assets constrain the ability to fully assess ongoing repayment capacity. Credit approval is recommended with conditions: monitoring of future trading results, cash flow performance, and timely filing compliance.

2. Financial Strength:
   The balance sheet is very modest, consistent with a micro company in its first year. Fixed assets are minimal (£1,600), reflecting limited capital expenditure. Current assets of £65,577 exceed current liabilities of £57,835, yielding net working capital of £7,742, which provides a small liquidity buffer. Shareholders’ funds of £9,342 show positive net equity, indicating no immediate solvency concerns. The company operates with approximately 2 employees, suggesting low overhead cost structure. Overall, the financial position is stable but very limited in scale.

3. Cash Flow Assessment:
   Current assets exceeding short-term liabilities is positive, but the margin is narrow. No detailed cash flow statements are available, so liquidity risk cannot be fully quantified. Given the company’s micro size and early stage, working capital management will be critical. There is no indication of overdue filings or creditor pressure, which supports adequate short-term liquidity. Continued monitoring of cash inflows, debtor collections, and creditor payments is advised.

4. Monitoring Points:

• Future trading results and profitability trends as the company matures beyond its first year.
• Cash flow statements when available, to ensure liquidity remains sufficient to cover obligations.
• Timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Any significant changes in ownership or management, as the sole PSC holds majority control.
• Expansion or contraction of balance sheet size and working capital position.