ESKIS FOOTWEAR LTD

Executive Summary

Eskis Footwear Ltd demonstrates a steady improvement in financial strength with increasing net assets and positive working capital, supporting its ability to meet short-term obligations. The company’s micro size and limited trading history warrant cautious approval with emphasis on ongoing liquidity monitoring and operational cash flow management. There are no immediate credit concerns, but continued oversight is recommended to mitigate sector risks.

ESKIS FOOTWEAR LTD - Analysis Report

Company Number: 13163436

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: APPROVE with monitoring. Eskis Footwear Ltd is a micro private limited company operating in specialized retail footwear since 2021. The latest accounts reflect stable growth in net assets and shareholders’ funds, with no overdue filings or indications of financial distress. Directors appear established with no adverse conduct records. However, the company's relatively short trading history and modest scale require ongoing monitoring, particularly of liquidity and working capital trends.

2. Financial Strength: The company’s balance sheet shows strengthening financial position year-on-year. Fixed assets increased from £7.7k in 2022 to £59.4k in 2025, evidencing investment in long-term resources. Shareholders’ funds rose from £43k in 2022 to £113k in 2025, indicating retained profits or capital injection supporting net asset growth. The company maintains positive net current assets (£53k in 2025), reflecting a buffer after meeting short-term liabilities of £263k. Overall, the capital base is modest but improving, consistent with a small retail business profile.

3. Cash Flow Assessment: Current assets are predominantly £316k with current liabilities at £263k, resulting in positive net working capital of £53k. This suggests the company holds sufficient liquid resources to meet short-term obligations. However, net current assets only represent about 20% of current liabilities, a moderate liquidity cushion. The average number of employees declined from 11 to 8, possibly reflecting cost control measures. The company reports £115k in financial commitments, which should be factored into cash flow forecasts. The absence of an audit limits detailed cash flow visibility, so caution on liquidity assumptions is advised.

4. Monitoring Points:

• Track liquidity ratios quarterly to ensure working capital remains positive amid retail sector volatility.
• Monitor inventory turnover and debtor days closely to avoid cash flow strain.
• Watch for any significant changes in financial commitments or contingent liabilities.
• Observe any substantial changes in shareholder funding or director remuneration impacting cash reserves.
• Review annual accounts for profitability trends and any emerging operational risks.