Company Number: 13133806

Analysis Date: 2025-07-20 11:17 UTC

1. Credit Opinion: APPROVE with caution. Calyx Cotton Limited is a micro-entity with consistent positive net current assets and net assets from incorporation through to the latest financial year. The company has maintained a healthy working capital position and has no overdue filings, indicating disciplined compliance. However, the significant decrease in current assets from £54,335 in 2023 to £16,412 in 2024 signals a reduction in liquidity that warrants monitoring. Given the modest scale and short operating history, credit facilities should be sized conservatively and reviewed regularly.

2. Financial Strength: The balance sheet shows net assets of £16,392 as at 31 January 2024, down from £54,315 in the prior year. Current liabilities are negligible (£20), so the company’s leverage is minimal. Shareholders’ funds closely mirror net assets, evidencing no external debt. The decline in current assets suggests a drawdown of cash or receivables, but the company maintains positive equity and no long-term liabilities. The micro-entity status limits the depth of financial detail, but overall the company appears solvent with adequate capitalization for its scale.

3. Cash Flow Assessment: Current assets, primarily cash and receivables, decreased sharply by about 70% year over year. With three employees consistently employed, operating expenses are likely stable but the reduction in liquid assets could pressure short-term cash flow. The very low current liabilities imply limited immediate obligations. The company’s ability to meet working capital needs is currently adequate but reduced liquidity suggests a need for careful cash management or access to supplemental funding if growth or unexpected costs arise.

4. Monitoring Points:

• Track quarterly cash flow and liquidity levels to ensure working capital remains positive.
• Monitor any changes in current liabilities or new debt that could affect leverage.
• Watch for any delays or issues in filing statutory accounts or confirmation statements.
• Evaluate the business growth trajectory and profitability once fuller accounts or management information become available.
• Observe director actions and any PSC changes that might signal shifts in control or strategy.