CAINE THE WONDER DOG LTD

Executive Summary

Caine The Wonder Dog Ltd is a very young entity with limited operating history and a weak liquidity position evidenced by net current liabilities and minimal equity. The business currently depends on director support to remain a going concern, posing credit risk. Conditional approval is recommended, subject to close monitoring of cash flow improvements and profitability in future periods.

CAINE THE WONDER DOG LTD - Analysis Report

Company Number: 14629392

Analysis Date: 2025-07-29 15:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Caine The Wonder Dog Ltd is a newly incorporated company (2023) operating in the take-away food sector. The financials reveal a weak liquidity position with net current liabilities of £2,264 and minimal net assets of £160. The company relies heavily on director support to continue as a going concern, indicating potential cash flow risks. Given the early stage of trading and limited financial history, credit approval should be conditional on ongoing monitoring and confirmation of improved liquidity and profitability.

2. Financial Strength:
   The balance sheet shows total fixed assets of £2,992, primarily tangible assets, and current assets of £16,223 (mostly cash of £15,603). Current liabilities are £18,487, dominated by taxation and social security liabilities (£15,200), which suggests tax obligations are a significant drain on liquidity. Shareholders’ funds are very low at £160, reflecting minimal retained profits (£60) and share capital (£100). This thin equity base and net current liability position indicate modest financial strength and vulnerability to adverse events.

3. Cash Flow Assessment:
   The company holds a reasonable cash balance relative to total current assets, but cash is insufficient to cover current liabilities fully. The working capital deficit indicates potential short-term liquidity pressure, especially with significant tax liabilities due within one year. The directors’ statement confirms reliance on director support to meet obligations, suggesting external financing or capital injections may be necessary. The absence of an income statement limits assessment of operating cash flow generation.

4. Monitoring Points:

• Liquidity improvements: Track reduction in tax and social security liabilities and improvement in net current assets.
• Profitability trends: Assess future filings for positive retained earnings growth and sustainable earnings.
• Director support: Confirm continued financial backing from directors or alternative financing arrangements.
• Timely filing compliance: Ensure accounts and confirmation statements continue to be filed punctually to avoid regulatory issues.
• Trade creditor payments: Monitor payables aging to avoid supplier relationship risks.