Company Number: 13821069

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: APPROVE with monitoring.
   Fire and Wolf Ltd is a micro-entity in the retail and wholesale beverage and household goods sector, active since December 2021. The company shows improving financial stability with positive net assets and working capital in its latest accounts. Although small in scale, it currently demonstrates the capacity to meet short-term obligations and maintain positive equity. Given the absence of audit requirements and limited financial history, approval is recommended with a watchful eye on continued trading performance and cash flows.

2. Financial Strength:
   The balance sheet at 31 December 2024 shows net assets of £3,549, up from a negative net asset position (-£2,623) in 2023, indicating a significant turnaround. Current assets (£7,451) exceed current liabilities (£2,345), producing healthy net current assets of £5,106, which supports short-term liquidity. The company’s capital and reserves have shifted from negative to positive, reflecting retained earnings or capital injection. The small scale and micro-entity status limit detailed financial disclosures, but the trend is positive.

3. Cash Flow Assessment:
   Liquidity appears adequate with net current assets comfortably positive. Current liabilities are low relative to current assets, implying no immediate liquidity pressure. The company employs 2 staff and operates in a niche retail/wholesale segment, suggesting modest working capital needs. However, detailed cash flow statements are not provided, so ongoing monitoring of cash generation and creditor management is necessary to confirm sustainable operations.

4. Monitoring Points:

• Continued positive net asset growth and working capital management.
• Timely filing of future accounts and confirmation statements to maintain compliance.
• Cash flow sufficiency, especially given micro entity status and limited financial depth.
• Stability of director and ownership structure; Mr. Brad Green holds significant control, so management continuity is important.
• Market conditions impacting retail and wholesale beverage and home fragrance sectors.