Company Number: 15258609

Analysis Date: 2025-07-29 18:59 UTC

1. Credit Opinion: APPROVE with low risk.
   Buffalo Corp Ltd is a newly incorporated private limited company (since Nov 2023) engaged in electrical installation (SIC 43210). The company demonstrates a clean financial snapshot with positive net assets and adequate working capital. The sole shareholder/director controls 75-100% of shares and voting rights, indicating clear governance. No overdue filings or insolvency indicators. However, as a start-up with just one employee and a short trading history, continuous monitoring is advised. Overall, the company appears creditworthy for modest credit facilities.

2. Financial Strength:
   The balance sheet at 30 Nov 2024 shows total net assets of £24,328, comprising mainly of cash (£38,668) and minimal fixed assets (£1,154 net book value). Current liabilities stand at £15,275, mostly taxation and social security, leaving net current assets (working capital) of £23,393. The company has a negligible equity base (£1 share capital) but retains accumulated profits in the P&L reserve. The deferred tax provision (£219) is immaterial. Financial position is strong for a start-up, with no debt and positive net assets.

3. Cash Flow Assessment:
   The company holds all current assets in cash, indicating excellent liquidity and ability to meet short-term obligations promptly. Current liabilities are covered 2.5 times by current assets, providing a comfortable buffer. The absence of trade debtors/inventory means low operational risk of bad debts or stock obsolescence but also indicates limited operational scale to date. Cash flow appears stable with no signs of liquidity stress.

4. Monitoring Points:

• Track revenue generation and profitability as the company grows its customer base and operations to ensure sustainable cash flow.
• Monitor tax and social security liabilities to avoid potential cash flow strain.
• Review any changes in director appointments or shareholding to assess governance risks.
• Keep watch on working capital trends as the company expands, particularly if credit terms to customers or suppliers are introduced.
• Assess fixed assets additions versus depreciation to understand capital investment and asset utilization.