BREEZE LABORATORY A LIMITED

Executive Summary

Breeze Laboratory A Limited is a small micro-entity with positive but declining net assets and working capital, indicating a modest financial position. While currently able to meet liabilities, the company’s shrinking equity base and rising current liabilities warrant cautious credit extension with conditions. Regular monitoring of liquidity and profitability metrics is essential to maintain creditworthiness.

BREEZE LABORATORY A LIMITED - Analysis Report

Company Number: 12547799

Analysis Date: 2025-07-20 11:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Breeze Laboratory A Limited demonstrates positive net assets and net current assets, indicating a solvency position capable of meeting short-term obligations. However, the declining net assets from £75,968 in 2021 to £25,646 in 2024 raise concerns about financial sustainability. The company’s micro-entity status and single employee suggest a small operation with limited financial buffer. Given these factors, credit can be extended conditionally, subject to ongoing monitoring of financial trends and cash flow stability.

2. Financial Strength
   The company’s balance sheet shows a consistent presence of positive net current assets and net assets over the last five years, confirming a basic level of financial health. However, there is a notable downward trend in net assets from £75,968 (2021) to £25,646 (2024), driven by increased current liabilities and reduced asset base. Share capital is nominal (£1.00), indicating reliance on retained earnings or other reserves for equity. The company maintains a low asset base consistent with a micro-entity in specialized design and IT-related services.

3. Cash Flow Assessment
   Current assets remain relatively stable (~£44k-£46k in recent years) but current liabilities have increased significantly in 2024 to £18,959 from £5,090 the previous year. This has reduced net current assets and suggests a tightening liquidity position. The company’s working capital remains positive, but the decrease signals potential cash flow pressures. The small scale of operations (1 employee) likely limits operational cash demands, but care should be taken to ensure liabilities do not outpace asset generation.

4. Monitoring Points

• Continued trend in net assets and net current assets, with particular attention to any further declines.
• Liquidity ratios (current ratio, quick ratio) to assess short-term payment capability.
• Profitability and retained earnings development in future accounts to ensure financial sustainability.
• Any changes in director or control structure that could affect governance or financial stewardship.
• Timely filing of accounts and confirmation statements to avoid compliance risks.