CARBO CULTURE LIMITED

Executive Summary

Carbo Culture Limited demonstrates improving financial position with growing net assets and positive working capital, supported by investment in fixed assets. However, a significant rise in receivables and reduced cash balances introduce liquidity considerations. Approval is recommended with conditions emphasizing close monitoring of cash flow and debtor management to ensure ongoing creditworthiness.

CARBO CULTURE LIMITED - Analysis Report

Company Number: 13524255

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: APPROVE with conditions

Carbo Culture Limited, a private limited company incorporated in 2021 and controlled by a Finnish parent Carbo Culture Oy, shows improving financial strength and positive working capital. The company has no overdue filings and operates in a niche professional scientific/technical activity sector, which may have specialized risks but also growth potential. However, the company is relatively new, with limited trading history and modest asset base, warranting monitoring of ongoing cash flow and receivables collection. Approval is recommended for credit facilities with conditions including periodic review of debtor aging and cash flow stability.

2. Financial Strength:

• The balance sheet shows steady growth of net assets from £9,743 (2022) to £26,046 (2023), reflecting retained earnings accumulation.
• Tangible fixed assets increased significantly to £9,459 (2023) from £2,195 (2022), indicating investment in business infrastructure.
• Current assets rose notably to £72,857 driven primarily by a large increase in debtors (£65,502 in 2023 vs £4,427 in 2022), while cash decreased to £7,355 from £37,394.
• Current liabilities also increased but less proportionally, resulting in improved net current assets (working capital) of £16,587 in 2023 from £7,548 in 2022.
• Shareholders’ funds are positive and equal to net assets, with no long-term debt reported, indicating a clean capital structure but limited external leverage history.

3. Cash Flow Assessment:

• Cash on hand has decreased substantially; this could suggest use of cash to finance asset purchases or working capital needs.
• The sharp increase in debtors requires scrutiny: it may reflect extended credit terms or slower collections, impacting liquidity.
• Positive net current assets indicate short-term solvency, but the quality and timing of debtor collections must be monitored.
• The company employs two staff including directors, suggesting a lean cost structure.

4. Monitoring Points:

• Debtor aging and collection efficiency: High receivables concentration could pose liquidity risks.
• Cash flow trends: Given the cash drop, ensure operating cash generation suffices for obligations.
• Profitability evolution: As profit and loss statements are not provided, future filings should be reviewed for profitability and earnings quality.
• Business development and sector risks: Monitor market conditions in their specialized SIC code 74909.
• Parent company support: Assess extent of operational and financial backing from Carbo Culture Oy, especially if external funding is needed.