Company Number: 13512757

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Caleem Ltd is a relatively new company (incorporated 2021) operating in retail clothing. Its latest accounts show a modest but positive net asset base and improved working capital position year-on-year. The company has grown its stock significantly and increased employee numbers, indicating expansion. However, current liabilities remain high relative to current assets, resulting in a very slim net current asset margin (£6,474 in 2024). The company’s cash position is adequate but not robust, and its small equity base leaves limited buffer for unexpected shocks. Given the early-stage growth and tight liquidity, lending should be conditional on continued monitoring of cash flow and working capital management.

2. Financial Strength:

• Net assets have improved steadily from £1,941 in 2023 to £6,474 in 2024, showing retained earnings growth.
• The balance sheet is asset-light, with no fixed assets reported; current assets mainly comprise stock (£160,000) and cash (£57,929).
• Current liabilities increased markedly from £69,108 to £211,455, driven likely by trade creditors or short-term loans, indicating reliance on supplier credit or borrowing.
• Shareholders funds remain low (£6,474), which is typical for a young private limited company but presents limited equity support.

3. Cash Flow Assessment:

• Cash balances are stable around £55-58k but represent only about 27% of current liabilities, reflecting tight liquidity.
• Net current assets are positive but marginal, suggesting working capital is being managed but with limited cushion.
• The significant increase in stock levels requires careful management to avoid cash flow strain through slow-moving inventory.
• No audit was performed, so some caution is warranted on data completeness.

4. Monitoring Points:

• Watch current ratio and net current assets closely to ensure liquidity remains positive and working capital does not deteriorate.
• Monitor stock turnover and debtor days to avoid inventory obsolescence and receivables build-up.
• Regularly review creditor payment terms and any short-term borrowing to avoid liquidity squeezes.
• Track profitability and cash generation trends in forthcoming accounts to assess whether growth is sustainable without compromising liquidity.
• Observe any changes in director or ownership structure that may impact financial strategy or risk profile.