Company Number: SO306893

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: APPROVE
   C&M Nosredna LLP demonstrates strong liquidity and a solid balance sheet with substantial net current assets and no overdue filings. The company holds significant investment property valued at £669,300, which provides asset backing. Its current liabilities are low relative to current assets, suggesting good short-term financial health. The members have a reasonable level of loans outstanding to themselves, but these are interest-free and subordinated to other creditors, mitigating risk. There is no indication of financial distress or adverse director conduct. Given the stable financial position and clean compliance record, the company appears capable of servicing debt obligations.

2. Financial Strength:
   The LLP’s total net assets stand at approximately £807,318, primarily consisting of a stable investment property valued at £669,300 and net current assets of £138,018. The balance sheet shows consistency over recent years with minimal fluctuations in cash and debtors, indicating steady operations. The low current liabilities (£5,306) relative to current assets (£143,324) yield a strong current ratio (~27), reflecting excellent short-term solvency. Loans due to members (£14,190) have decreased, improving the net asset position. The LLP is small-sized and exempt from audit, but the provided financials and disclosures suggest prudent financial stewardship.

3. Cash Flow Assessment:
   Cash balances remain healthy at £82,420 with debtors of £60,904, indicating good working capital management. Net current assets of £138,018 support operational liquidity well beyond short-term liabilities. The company’s cash position declined slightly from the previous year but remains adequate to cover payables and any short-term financing needs. The connected party debtor of about £59,517 is interest-free and repayable on demand, which could represent a liquidity risk if not collectible promptly, but the relationship and common members mitigate this risk to some extent. Overall, cash flow appears stable and sufficient for ongoing obligations.

4. Monitoring Points:

• Monitor collection of the significant connected party debtor to ensure it does not impair liquidity.
• Keep watch on the loans due to members and ensure they do not increase significantly, affecting net asset quality.
• Observe rental income and fair value of the investment property for any material changes impacting earnings and asset valuation.
• Review timely filing of annual accounts and confirmation statements to maintain compliance and transparency.
• Assess any changes in member control or new external debt that could affect financial risk.