Company Number: 13183039

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Frome K9 Training Ltd shows modest net asset growth and increased fixed assets, indicating some investment in operational capacity. However, the company has persistent net current liabilities and significant long-term creditors, which impairs short-term liquidity and increases refinancing risk. Approval is conditional on monitoring cash flow closely and securing arrangements to manage current liabilities and debt servicing.

2. Financial Strength
   The company is classified as a micro-entity with total net assets of £26,338 as of 28 February 2025, up from £22,825 the prior year. Fixed assets increased from £56,669 to £74,050, reflecting capital investment. However, net current liabilities remain negative at £6,291, signaling working capital strain. Long-term liabilities rose sharply from £26,302 to £41,296, increasing leverage and financial risk.

3. Cash Flow Assessment
   Current assets (£10,364) are significantly lower than current liabilities (£16,655 due within one year), resulting in negative working capital and potential liquidity challenges. The company’s single-employee structure suggests low overhead but limited scale to generate cash inflows. Cash flow management must be vigilant to avoid payment delays or covenant breaches.

4. Monitoring Points

• Liquidity ratios and working capital trends to ensure current liabilities are manageable.
• Debt servicing capability given rising long-term creditors.
• Revenue growth and profit margins to improve cash generation.
• Any changes in director or ownership that might affect governance or financial control.