Company Number: 12864863

Analysis Date: 2025-07-20 15:07 UTC

1. Credit Opinion: APPROVE with conditions. Bolt Angels Ltd is an active private limited company operating since 2020 in fund management activities (SIC 66300). The company exhibits strong net asset growth and substantial fixed asset investments, indicating capital deployment consistent with its investment focus. However, the current liabilities have increased significantly year-on-year, leading to a negative net current asset position in 2024. The company’s cash balance is relatively low compared to current liabilities, which may pressure short-term liquidity. Directors have advanced funds to support operations, which were repaid post year-end, showing management’s commitment to financial stability. Credit approval is recommended with monitoring of liquidity and working capital management.

2. Financial Strength: The balance sheet shows a marked improvement in net assets from £612k in 2023 to £1.414m in 2024, driven mainly by increased investments (£1.436m in 2024 vs £550k in 2023) and tangible fixed assets growth. Shareholders’ funds rose from £800k to £1.878m, reflecting capital injections or retained earnings. Despite strong asset growth, net current liabilities increased from £(61k) in 2023 to £(24.9k) in 2024, caused primarily by a rise in creditors within one year (£246.8k vs £97.4k). The company’s equity base is solid, but working capital is negative, which requires careful management. No reported impairments on investments indicate no evident asset quality deterioration.

3. Cash Flow Assessment: Cash at bank declined from £67.5k in 2023 to £45.9k in 2024, while debtors doubled to £176k, suggesting increased receivables tied up in operations or investments. The current liability increase to £246.8k exceeds cash and debtor balances combined, resulting in negative net current assets, signaling potential short-term liquidity stress. However, directors’ loans provided interim financing, fully repaid shortly after the year-end, indicating access to internal funding support. Overall, liquidity is tight but manageable if receivables convert timely and creditor terms are negotiated adequately.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to ensure working capital remains sufficient to cover short-term obligations.
• Receivables aging: To monitor cash conversion cycles and prevent liquidity strain.
• Creditor profile: To assess concentration risk and payment terms.
• Investment performance and impairment risk: Given the company’s growing investment portfolio.
• Directors’ advances or external financing: To confirm ongoing management support or need for external funding.
• Profitability trends (when available): Although not disclosed here, future profit and loss performance will impact cash flow sustainability.