CABO LIMITED

Executive Summary

Cabo Limited is a newly established micro-sized management consultancy with modest initial profitability and a positive but very limited financial base. The company demonstrates initial trading viability but requires close monitoring of revenue growth and liquidity before higher credit exposure is granted. Conditional approval is appropriate with emphasis on cash flow and working capital management.

CABO LIMITED - Analysis Report

Company Number: 14594764

Analysis Date: 2025-07-29 14:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cabo Limited is a newly incorporated private limited company with a very modest turnover (£2,200) and limited trading history (just over one year). The company generated a small operating profit (£977) and net profit (£791) in its first period, which indicates initial viability. However, the scale of operations is minimal, and the company’s financial base is very small with net assets of £391. The director is also the sole significant controller, which concentrates risk but may ensure aligned management. Approval is recommended on a conditional basis, subject to monitoring further trading performance and cash flow development before considering larger credit facilities.

2. Financial Strength:
   The balance sheet is very modest but shows a positive net asset position (£391) with net current assets of £391. Current assets (£577) exceed current liabilities (£186), indicating positive working capital. The capital structure is largely equity funded, with £100 share capital and retained earnings of £291. There are no long-term liabilities or fixed assets reported. The company operates at a micro scale with very low turnover and limited financial resources, which restricts financial strength and resilience.

3. Cash Flow Assessment:
   Cash position is low (£218), but current assets and net current assets are positive. Debtors (£359) suggest receivables are outstanding, and the company currently employs no staff, which limits operating cash outflows. The company reported positive profitability at a small scale, which is encouraging for cash generation. However, given the low absolute cash and turnover, liquidity risk exists if payments are delayed or expenses increase.

4. Monitoring Points:

• Turnover growth and diversification of revenue streams.
• Improvement in cash balances and reduction in debtor days.
• Maintenance of positive working capital and net assets.
• Any increase in liabilities or credit exposure.
• Director’s ongoing involvement and financial stewardship given single-person control.
• Timely filing of future accounts and confirmation statements to monitor compliance and business continuity.