Company Number: 13136687

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: APPROVE with conditions

Conserva UK Ltd is a micro-entity operating in packaging activities with a stable and improving financial position. The company has demonstrated growth in net assets and working capital over the past two years, indicating enhanced financial strength. However, given its small scale, minimal employee base (1 employee), and moderate long-term liabilities, credit facilities should be extended with monitoring to ensure continued cash flow stability and management effectiveness.

2. Financial Strength:

• The company’s net assets have grown significantly from £20,419 at the end of 2023 to £87,219 at the end of 2024, reflecting improved equity and capital retention.
• Fixed assets remain relatively stable (~£29k) while current assets have increased substantially from £141k to £225k, suggesting increased liquidity or receivables.
• Current liabilities have increased but at a lower rate than current assets, resulting in a strong net current asset position of £116,704.
• Long-term creditors have slightly decreased (£60,566 to £57,217), which is positive for financial leverage.
• Overall, the balance sheet shows sound financial health for a micro-entity with a good buffer of net assets over liabilities.

3. Cash Flow Assessment:

• The significant increase in current assets relative to current liabilities implies improved short-term liquidity and working capital management.
• Net current assets have more than doubled from £51,336 to £116,704, indicating the company is well-positioned to meet short-term obligations.
• However, detailed cash flow statements are not provided, so it is advisable to confirm that the increase in current assets is not heavily reliant on slow-moving receivables or stock.
• The company employs one person, suggesting limited payroll burden.
• The presence of long-term liabilities warrants attention to ensure cash flows remain sufficient for debt servicing.

4. Monitoring Points:

• Monitor the aging profile of receivables and inventory levels to confirm liquidity quality.
• Watch for any significant increases in liabilities, particularly long-term debt, that could stress cash flow.
• Review subsequent trading performance to ensure continued profitability and retention of net assets growth.
• Assess management’s ability to sustain growth with minimal staffing and maintain tight operational controls.
• Confirm timely filing of accounts and compliance with regulatory requirements continues as current.