Company Number: 12920068

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bread and Butter Public Relations Limited is a micro-entity with a relatively small capital base and limited financial disclosure. The company is active and filing timely accounts with no overdue returns, which is positive. However, there is a notable decline in net assets and net current assets from £103,167 in 2022 to £25,300 in 2023, indicating a weakening balance sheet position. The reduced working capital and asset base suggest some financial stress or increased liabilities, warranting caution. Approval is recommended subject to monitoring financial performance and cash flow closely, with conditions on maintaining sufficient liquidity and ensuring no material adverse changes.

2. Financial Strength:
   The company’s fixed assets increased modestly from £2,552 to £6,590 over the last year, but current assets dropped significantly from £161,886 to £108,998. Current liabilities rose from £61,271 to £90,288, leading to net current assets shrinking from £100,615 to £18,710. This sharp contraction in working capital is concerning as it reduces the buffer available to meet short-term obligations. Overall net assets fell by approximately 75%, which weakens the shareholder equity base. The balance sheet remains positive but less robust, indicating reduced financial strength and less resilience to financial shocks.

3. Cash Flow Assessment:
   While direct cash flow data is not provided, the reduction in current assets and increase in current liabilities suggest tighter liquidity. The company’s working capital is positive but significantly diminished, which may strain operational cash flow. With an average headcount stable at 6 employees, payroll obligations are likely consistent, but the company must manage creditor payments carefully. Absence of overdue filings is a positive sign but the liquidity position requires ongoing attention to avoid cash shortfalls.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital trends to detect further deterioration or improvement.
• Review creditor aging to ensure timely payments and avoid supplier disputes.
• Watch profitability and retained earnings (P&L reserve) in future accounts to assess business trajectory.
• Keep track of any director or significant control changes that could impact governance or strategy.
• Verify any contingent liabilities or off-balance sheet exposures that might impact creditworthiness.