Company Number: 14253098

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: CONGLETON OATCAKES LIMITED is a micro private limited company operating in the take-away food sector, incorporated recently in 2022. The latest accounts show a positive turnaround from negative net assets in the prior year to a small positive net asset position of £289 as of 31 July 2024. The company’s current liabilities have decreased, and net current assets have improved from a deficit of £918 to a positive £340, indicating an improvement in short-term liquidity. Given its brief trading history and modest financial base, credit approval should be CONDITIONAL, with limits placed on exposure and a requirement for ongoing financial monitoring to ensure continued improvement in working capital and profitability.

2. Financial Strength: The balance sheet indicates very limited fixed assets (£749) and a modest level of current assets (£7,350) primarily representing cash, receivables, or stock. Current liabilities reduced to £7,010 from £9,979 the previous year, improving the liquidity position. However, shareholders’ funds remain very low at £289, suggesting minimal equity buffer. The company’s small net asset base and limited fixed asset coverage indicate a fragile financial structure that could be vulnerable to unexpected cash flow shocks or operational setbacks.

3. Cash Flow Assessment: The positive net current assets of £340 reflect a working capital surplus, a significant improvement from the prior year’s net current liabilities of £918. This suggests better management of receivables, payables, or inventory, enhancing liquidity. However, the absolute amounts are small, and the company’s ability to generate consistent positive cash flow remains to be demonstrated over time. The average number of employees increased slightly from 5 to 6, which may increase operating expenses. Careful monitoring of cash flow generation and debt servicing capacity is advised.

4. Monitoring Points:

• Continued improvement in net current assets and liquidity ratios to ensure the company can meet short-term obligations.
• Profitability trends once full profit and loss information becomes available, given the absence of P&L details.
• Stability or growth in turnover, as micro companies often have volatile revenues.
• Management of working capital components (debtors, creditors, stock) to sustain cash flow.
• Any changes in director or ownership structure that could impact financial stewardship.
• Filing compliance continues to be met; maintain vigilance for timely accounts and confirmation statements.