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.