Company Number: 13557065

Analysis Date: 2025-07-20 15:30 UTC

1. Credit Opinion: APPROVE – Daniels Bake Limited demonstrates solid financial fundamentals for a micro-entity with positive net assets and strong working capital. The company is current with all filing requirements and has no indications of financial distress or director misconduct. The presence of substantial net current assets relative to current liabilities suggests good short-term liquidity, supporting debt servicing capacity. Although a young business incorporated in 2021, its steady growth in net assets over four years indicates improving financial health. The absence of employees in the most recent year might reflect operational changes but does not appear to impair financial stability.

2. Financial Strength: The balance sheet shows a low level of fixed assets (£4,141) consistent with the nature of a retail bakery and café business. Current assets have increased from £30,702 in 2021 to £46,189 in 2024, while current liabilities remain low and stable around £3,000 or less. This yields net current assets of £43,302 as of the latest period, a strong working capital position. Net assets grew from £21,819 in 2021 to £47,443 in 2024, more than doubling shareholders’ funds, which signals retained earnings accumulation or capital injection and suggests sound equity backing.

3. Cash Flow Assessment: The company’s working capital position is robust with current assets substantially exceeding current liabilities, indicating good liquidity to meet short-term obligations. The low level of creditors falling due within one year (£2,887) relative to current assets supports this view. However, absence of detailed cash flow statements limits a full cash flow evaluation. The company’s micro-entity exemption means less detailed financial disclosures, so care should be taken to monitor cash generation from operations going forward.

4. Monitoring Points:

• Track future filings for timely submission and any changes in financial position.
• Monitor net current assets and liquidity ratios to detect any erosion of working capital.
• Watch operating performance and cash flow once more detailed accounts or management information become available.
• Observe any changes in ownership or director appointments that may affect governance.
• Note absence of employees in the latest report; investigate if this reflects outsourcing or other operational shifts that could impact cash flow or risk.