FOREST HALAL MEAT & POULTRY LTD

Executive Summary

Forest Halal Meat & Poultry Ltd exhibits a stable and improving financial position with strong liquidity and positive net assets growth. The company’s micro-entity status and low liabilities suggest low financial risk, supporting approval for credit facilities. Ongoing monitoring should focus on maintaining liquidity and compliance to sustain creditworthiness.

FOREST HALAL MEAT & POULTRY LTD - Analysis Report

Company Number: 12548526

Analysis Date: 2025-07-29 16:27 UTC

1. Credit Opinion: APPROVE
   Forest Halal Meat & Poultry Ltd demonstrates a sound short-term financial position with positive and growing net current assets, indicating the ability to meet short-term obligations. The business is active, showing steady improvement in net assets over the past four years, which supports creditworthiness. There are no indications of financial distress, overdue filings, or director disqualifications. Given these factors, the company appears capable of servicing credit facilities.

2. Financial Strength:
   The company has a strong micro-entity balance sheet relative to its size, with net assets increasing from £2,497 in 2020 to £12,079 in 2024. Net current assets have improved consistently, rising to £12,079 in 2024 from £2,497 in 2020. The balance sheet shows no long-term liabilities, indicating a low gearing risk. Shareholders' funds have grown, reflecting retained earnings and capital injection or profit retention. The small share capital (£100) is typical for micro-companies.

3. Cash Flow Assessment:
   Current assets (£12,977) comfortably exceed current liabilities (£898), offering a healthy working capital buffer. The low level of current liabilities suggests limited short-term debt obligations, which reduces liquidity risk. Although detailed cash flow statements are not provided, the increasing net current assets trend suggests positive operational cash flow and prudent working capital management. The reduction in average employees from 5 to 3 may also indicate operational cost control.

4. Monitoring Points:

• Monitor continued growth or stability in net current assets and net assets to ensure ongoing financial resilience.
• Watch for changes in current liabilities that might increase liquidity risk.
• Track any changes in employee numbers and operating scale that may affect revenue streams.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance risk.
• Monitor director status and any negative changes in corporate governance or control.