Company Number: 13071457

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: APPROVE
   DENMET LIMITED demonstrates a solid and improving financial position with substantial growth in net current assets and shareholder funds over the past 3 years. The company shows strong liquidity and working capital, indicating capability to meet short-term obligations. The business is active and compliant with filing deadlines, and management appears stable with no adverse records. Given these positive factors, the company is creditworthy for standard lending facilities, subject to usual covenants.

2. Financial Strength:
   The company’s net assets increased from £16k in 2020 to £337k in 2023, reflecting strong equity growth. Fixed assets are minimal but stable, consistent with a service-oriented licensed restaurant business. The balance sheet shows a robust improvement in net current assets from £16k to £336k, indicating enhanced short-term financial resilience. Shareholders funds have grown in line with retained earnings, supporting a healthy capital base for a micro-entity.

3. Cash Flow Assessment:
   Current assets have more than doubled from £334k in 2022 to £792k in 2023, while current liabilities increased but remain well covered, resulting in a strong net working capital position (£336k). This suggests good liquidity and efficient management of receivables, stock, and payables. The increase in average employees from 12 to 14 aligns with business growth and is manageable. The company’s cash flow position appears strong enough to service operational and debt commitments.

4. Monitoring Points:

• Monitor continued growth in net current assets and net profit margins to ensure ongoing debt servicing capacity.
• Watch for any significant increase in current liabilities that could pressure liquidity.
• Keep track of employee cost trends as the workforce expands.
• Confirm timely filing of future accounts and confirmation statements to mitigate compliance risks.
• Review any changes in director or ownership that might affect governance or credit risk.