Company Number: 13205773

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: APPROVE
   D4 COFFEE LIMITED demonstrates a stable micro-entity financial profile with positive net assets and working capital. The company is active, meets its filing deadlines, and has no signs of financial distress or adverse director conduct. While small in scale and with only one employee, it maintains a positive equity base and liquidity, indicating capability to meet debt obligations. The director’s background and full ownership suggest committed management, though limited operational scale warrants cautious credit exposure.

2. Financial Strength:
   The company’s balance sheet shows net assets of £49,648 as at 31 July 2024, a slight decrease from £53,203 the prior year. Fixed assets are modest at £12,460, with current assets of £53,423 comfortably exceeding current liabilities of £16,235, resulting in net current assets of £37,188. The company’s equity is entirely positive and has been consistent since incorporation in 2021. The decline in current assets and net assets year-on-year is minor but should be monitored. Overall, the financial position is sound for a micro-entity.

3. Cash Flow Assessment:
   Current assets substantially exceed current liabilities, indicating healthy short-term liquidity and working capital adequacy. The company’s ability to cover short-term obligations by a factor of over 3x (current assets to current liabilities) reduces credit risk. However, the small scale of operations and just one employee suggest limited cash generation capacity and possibly reliance on owner funding or limited revenues. Cash flow statements are not provided, so monitoring actual cash inflows and outflows is advised.

4. Monitoring Points:

• Watch for any deterioration in net current assets or net asset position in future filings.
• Monitor the company’s growth or contraction in turnover and profitability, as these are not disclosed here but critical for repayment capacity.
• Keep an eye on any changes in director or ownership structure affecting management continuity.
• Assess any overdue filings or delays in accounts or confirmation statements to flag governance or financial stress.
• Evaluate the impact of market conditions on the retail and coffee production sectors where the company operates.