CIBEST LTD

Executive Summary

CIBEST LTD shows improving financial strength with positive net assets and working capital, supported by increasing retained earnings. The company’s liquidity relies significantly on debtor collections and related party funding, which poses some risk. Credit can be conditionally approved with ongoing monitoring of cash flow, debtor quality, and related-party exposures.

CIBEST LTD - Analysis Report

Company Number: 13164730

Analysis Date: 2025-07-20 19:15 UTC

Credit Opinion:
CONDITIONAL APPROVAL. CIBEST LTD demonstrates improving financial health with positive net assets and net current assets, indicating the ability to meet short-term liabilities. However, the company is relatively young (incorporated 2021) and has a small equity base (£1 share capital with accumulated reserves of £119k). The reliance on related-party transactions and funding is a monitoring consideration. Credit facilities could be extended with conditions including periodic financial updates and limits tied to working capital metrics.

Financial Strength:
The balance sheet shows growth from net assets of £31k (2023) to £119k (2024), primarily driven by increased current assets and retained profits. Tangible fixed assets are modest (£6.4k), reflecting low capital intensity. The company maintains positive net current assets (£114k), indicating good short-term solvency. Shareholders’ funds are entirely equity-based with no reported long-term debt, which supports financial stability. However, the small share capital and dependence on a few shareholders with significant control (50-100%) may concentrate risk.

Cash Flow Assessment:
Cash at bank is low (£22k) relative to debtors (£447k), suggesting some cash flow is tied up in receivables. Current liabilities of £355k are covered by current assets of £470k, but the working capital cycle depends heavily on debtor collection efficiency. The increase in debtors and related-party balances indicates potential exposure to collection risk. The company’s liquidity position is acceptable but warrants close monitoring, especially given the low cash reserves and related party funding.

Monitoring Points:

• Debtor aging and collection performance to ensure cash inflows remain timely.
• Related party transactions and balances, to assess any risk concentration or funding dependency.
• Profitability trends and reserves growth in future accounts to confirm ongoing viability.
• Changes in director or ownership structure, given the small number of controlling shareholders.
• Compliance with filing deadlines and any changes in liabilities or working capital.