CODE4 GARDENS LTD

Executive Summary

Code4 Gardens Ltd presents a strong credit profile typical for a micro-enterprise with steady net asset growth and liquidity adequacy. The company’s financial position supports approval for credit facilities with no immediate concerns. Ongoing monitoring should focus on liquidity maintenance and adherence to statutory filing requirements.

CODE4 GARDENS LTD - Analysis Report

Company Number: 13215739

Analysis Date: 2025-07-29 14:05 UTC

1. Credit Opinion: APPROVE
   Code4 Gardens Ltd demonstrates solid financial stability for a micro-entity with consistent growth in net assets and positive working capital. The company shows good management control with two directors/shareholders actively involved. There is no indication of financial distress or overdue filings. The company’s ability to service short-term liabilities from current assets and maintain equity growth supports credit approval for standard lending facilities.

2. Financial Strength:
   The balance sheet reveals improving net assets, increasing from £13,833 in 2021 to £48,940 in 2024. Fixed assets remain modest but stable, indicating manageable investment in long-term resources. Current assets exceed current liabilities by a healthy margin (£36,561 net current assets in 2024), and total liabilities include some long-term creditor commitments (£13,517) but these are well-covered by total assets. Overall, the company’s equity base is strong relative to its size, reflecting retained earnings and positive reserves. The micro-entity status implies limited scale but conservative financial management.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables, sufficient to cover current liabilities comfortably, indicating good liquidity. Working capital has improved year-on-year, suggesting effective cash flow management. No audit exemption indicates simplified reporting, but this does not diminish the positive liquidity signals. The small number of employees (2) keeps overheads low, supporting cash flow stability. No evidence of reliance on overdrafts or short-term borrowing is present.

4. Monitoring Points:

• Continued maintenance of positive net current assets to ensure liquidity.
• Watch any increases in long-term creditor balances relative to fixed assets.
• Monitor turnover and profitability trends as they become available to assess growth sustainability.
• Keep track of director changes or any related party transactions that might affect credit risk.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.