Company Number: 13332615

Analysis Date: 2025-07-29 17:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. CLARA BATTEN LTD is a very small, micro-entity operating in the performing arts sector with minimal financial resources and no employees. The company shows a positive net asset position of £275 as of April 2024, improving from £1 previously, indicating some growth. However, the absolute scale is extremely limited and current liabilities are close to current assets, resulting in a very tight working capital position. The business is young (incorporated 2021) and controlled fully by a single individual, which concentrates risk. Credit should be extended cautiously, with limits proportional to the modest financial base and subject to ongoing review.

2. Financial Strength: The balance sheet reflects micro-entity status with current assets of £2,464 and current liabilities of £2,189, yielding net current assets of £275. The net asset base is minimal (£275), but positive and improved from £1 in the prior year. There are no fixed assets or long-term liabilities reported. Shareholders’ funds equal net assets, indicating no external debt. The company has no employees, suggesting low fixed cost overheads. Overall, the financial strength is weak due to the small scale, but the absence of debt and positive net assets reduce immediate insolvency risk.

3. Cash Flow Assessment: Cash and current assets barely exceed current liabilities, leaving very limited liquidity cushion. Working capital is positive but marginal, which may constrain the company’s ability to absorb shocks or fund growth without additional capital injection or credit lines. No information on cash flow from operations is provided, but the lack of employees and small asset base suggest minimal operating cash needs. Nonetheless, the current financial position demands careful monitoring of receivables and payables to avoid liquidity stress.

4. Monitoring Points:

• Net current assets and liquidity trends in subsequent filings to ensure working capital remains positive.
• Any increase in liabilities or deterioration in net assets.
• Timely filing of accounts and confirmation statements to avoid compliance risk.
• The company’s ability to generate revenue and maintain or improve net assets given its very small scale.
• Potential impact of director changes and any related-party transactions given sole control by one individual.