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.