GINGER LIME LTD

Executive Summary

Ginger Lime Ltd is an early-stage micro enterprise with very limited financial history and minimal capital. While the company has maintained compliance with filing requirements and shows a small positive net current asset position, its financial capacity and cash flow generation remain unproven. Conditional credit approval is advised, subject to further trading data and ongoing monitoring of liquidity and financial performance.

GINGER LIME LTD - Analysis Report

Company Number: 15209968

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ginger Lime Ltd is a newly incorporated micro private limited company operating in the retail sale via mail order or internet sector. The company’s financial data shows a very modest net current asset position of £143, indicating minimal operating scale and financial buffer. The director is also the sole significant controller, which suggests concentrated control but limited financial depth. The company is too newly established to demonstrate a track record of trading performance or cash flow generation. Credit approval should be conditional on obtaining further financial information, confirmation of business plan viability, and monitoring initial trading results to ensure the company can meet its debt obligations.

2. Financial Strength:
   The balance sheet as of 31 October 2024 shows current assets of £10,888 against current liabilities of £10,745, leaving net current assets of £143. There are no fixed assets reported, and shareholders' funds equal £143, indicating very limited capital invested to date. The accounts note a director’s loan of £2,984 advanced during the period but outstanding at year-end, which was repaid after the year-end. This reliance on director funding is typical for a start-up but highlights initial funding constraints. Overall, the financial strength is minimal and reflects the company’s start-up phase with limited resources and no employee base.

3. Cash Flow Assessment:
   The company’s unaudited accounts do not provide detailed cash flow statements, but the close matching of current assets to current liabilities and the small net working capital suggest very tight liquidity. The absence of employees and minimal assets indicates low operating complexity but also limited cash generation capacity. The director’s loan repayment post year-end is a positive sign of liquidity support. However, the company’s ability to generate positive operating cash flow in future periods remains unproven and should be closely monitored.

4. Monitoring Points:

• Quarterly review of turnover and profitability figures as trading develops.
• Monitor director’s loan account movements and any additional capital injections.
• Watch for changes in working capital metrics, especially debtor and creditor aging.
• Confirmation of timely filing of future accounts and confirmation statements.
• Ongoing review of business plan execution and market conditions for online retail.
• Monitor any changes in management or ownership structure that may impact control or financial support.