COLES COLLOQUIAL LIMITED

Executive Summary

Coles Colloquial Limited is a newly established management consultancy showing improving but still modest financial strength with net current assets of approximately £40k. The company currently depends on director funding and has limited trading history, warranting a conditional credit approval subject to ongoing monitoring of cash flow and debtor management. Timely settlement of tax liabilities and reduction of director loans will be key to sustaining creditworthiness.

COLES COLLOQUIAL LIMITED - Analysis Report

Company Number: 14363777

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Coles Colloquial Limited is a very young private limited company incorporated in late 2022, operating in management consultancy (SIC 70229). The company shows early signs of positive net current assets and shareholder equity growth from £100 at inception to £40,750 in the latest year. However, the company remains small in scale, with only one employee (the director), and limited historical financial data. The director has advanced £38,878 to the company, indicating reliance on director funding. For credit purposes, approval can be considered on a conditional basis, subject to monitoring of trading cash flows and reduction of director loans. The company’s ability to generate sustainable external cash inflows has yet to be demonstrated.

2. Financial Strength:

• The company’s balance sheet shows a modest but improving financial position with net current assets of £40,750 as at 30 September 2024, up from £100 the previous year.
• Current assets of £64,893 consist mainly of debtors (£47,213) and cash (£17,680).
• Current liabilities are £24,143, dominated by taxation and social security creditor balances (£23,152), which should be monitored for timely settlement.
• Shareholders’ funds have increased to £40,750, reflecting retained earnings of £40,650, indicating the company is generating some profits or capital contributions.
• The capital structure shows initial share capital of £100, with no long-term liabilities reported.
• The financial statements are unaudited but prepared under the small companies regime, which is reasonable given scale.

3. Cash Flow Assessment:

• Cash at bank has increased to £17,680 from £100 in the prior year, indicating some improvement in liquidity.
• Debtors represent a significant portion of current assets; timely collection of these is critical for liquidity.
• Current liabilities of £24,143, largely tax-related, suggest the company must manage working capital carefully to avoid arrears.
• The director’s loan of £38,878 provides a financial buffer but also indicates dependence on director funding rather than operational cash generation.
• Overall, liquidity is currently adequate but closely tied to the director’s continued financial support and effective debtor management.

4. Monitoring Points:

• Track debtor ageing and collection periods to ensure cash inflows remain consistent and timely.
• Monitor the build-up or repayment of director loans to assess reliance on internal funding.
• Watch the settlement of taxation and social security liabilities to avoid compliance or cash flow risks.
• Review future filed accounts for progression in profitability and cash flow from operations.
• Confirm no material adverse changes in business activity or key management personnel.