Company Number: 12566876

Analysis Date: 2025-07-20 15:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Boucher Holdings Ltd shows a recent turnaround in financial health after several years of negative net assets and working capital. The current year ended April 2024 reports a small positive net current asset position (£31) and net assets of £131, indicating the company has moved out of previous financial distress. However, the absolute levels remain minimal, and liquidity is tight with only £1,252 cash on hand. The company’s ability to service debt or absorb shocks remains limited, so credit should be extended cautiously with monitoring and potentially restricted limits or collateral. The director’s full ownership and control suggest concentrated management, which can be positive if the individual is financially competent but also increases risk if key person issues arise.

2. Financial Strength:
   The company’s balance sheet reflects a very modest capital base with shareholders’ funds of only £131 at the latest reporting date. Fixed assets are negligible (£100 net), and current assets (£10,769) barely cover current liabilities (£10,738), resulting in a net working capital of just £31. This is a significant improvement from prior years when net current liabilities and shareholders’ deficits were substantial (e.g., £-6,886 net assets in 2023). The prior years’ losses have largely been absorbed, but the equity base remains very thin, providing limited buffer against downturns or unexpected expenses. The micro-entity nature and small scale of operations limit financial resilience.

3. Cash Flow Assessment:
   Cash balances have decreased markedly from £7,782 in 2023 to £1,252 in 2024, indicating tighter liquidity. Debtors increased to £9,517, suggesting some sales on credit, but tight current liabilities imply potential pressure on short-term cash outflows. The company’s net current assets are positive but marginal. Limited cash reserves reduce flexibility to cover short-term obligations without drawing on credit lines or external funding. The absence of detailed profit and loss disclosure limits assessment of operational cash generation, but the director’s note indicates no audit requirement, which may reduce transparency. Overall, liquidity is fragile and needs close monitoring.

4. Monitoring Points:

• Track ongoing cash flow and current ratio to ensure current liabilities remain covered.
• Monitor debtor collection periods and credit control effectiveness given high debtor balances relative to cash.
• Watch for any changes in director control or ownership that could impact management continuity.
• Review any new filings for profit and loss information to assess profitability trends.
• Assess any additional borrowing or credit facilities sought and their terms.
• Keep an eye on industry sector risks in condiment manufacturing and supply chain factors.