DIFFERENT SAUCE LTD

Executive Summary

Different Sauce Ltd is a micro-sized PR and communications firm with modest but improving net assets and positive working capital, indicating basic financial stability. The company’s ability to meet short-term liabilities is adequate but limited in scale, warranting a cautious credit approach. Approval is recommended with conditions focused on liquidity monitoring and controlling credit limits.

DIFFERENT SAUCE LTD - Analysis Report

Company Number: 14195078

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Different Sauce Ltd is a very small, micro-entity with limited financial scale but shows a positive net asset position and working capital improvement over the last year. The company is active, with no overdue filings and a stable director ownership. However, the modest asset base and low net current assets require cautious credit exposure. Approval is recommended with conditions such as monitoring of cash flow and possibly limiting credit facilities to short-term or small amounts to mitigate risk.

2. Financial Strength
   The balance sheet indicates a net asset position of £2,613 as of June 2024, up from £1,751 in prior years, showing some growth in equity. Fixed assets are negligible (£1,020), consistent with a service business model. Current assets stand at £12,058 with current liabilities of £10,292, resulting in positive net current assets of £1,593, an improvement from the prior year. Shareholders’ funds match net assets, reflecting no long-term debt. Overall, the financial strength is modest but stable for a micro business.

3. Cash Flow Assessment
   Current assets mainly include cash and receivables sufficient to cover current liabilities, indicating adequate short-term liquidity. The company’s positive net current assets suggest it can meet its short-term obligations. However, the relatively thin working capital buffer means any significant delayed payments or unexpected expenses could stress liquidity. The company pays dividends to its sole director, which should be monitored for impact on retained earnings and cash reserves.

4. Monitoring Points

• Track net current assets and liquidity closely to ensure ongoing ability to meet liabilities as they fall due.
• Monitor dividend payments against profitability and cash flow to avoid erosion of working capital.
• Watch for any significant changes in revenue or client base that could affect cash flow stability.
• Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance.