GLOBEHO LIMITED

Executive Summary

Globeho Limited is a start-up retailer with a modest but positive working capital position and minimal equity. Its financial position is currently stable but fragile, with significant long-term creditors that require careful management. Credit approval is recommended on a conditional basis, subject to ongoing monitoring of liquidity, stock management, and creditor repayment capacity as the business establishes its trading history.

GLOBEHO LIMITED - Analysis Report

Company Number: 14760620

Analysis Date: 2025-07-19 12:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Globeho Limited is a newly incorporated small private limited company operating in the retail sale of clothing in specialised stores. The company has a modest net asset base (£3,699) and positive net current assets (£16,199), indicating working capital sufficiency. However, it carries a material long-term creditor balance of £12,500, which warrants further scrutiny regarding repayment terms and funding sources. Given the company’s short trading history (just over one year) and limited financial track record, credit approval should be conditional on obtaining more detailed cash flow forecasts, confirmation of creditor terms, and ongoing monitoring of trading performance.

2. Financial Strength:
   The company’s balance sheet shows total current assets of £17,192, predominantly inventory (£15,500) and cash (£1,692). Current liabilities are low at £993, resulting in a healthy net current asset position. However, the presence of creditors falling due after more than one year amounting to £12,500 reduces net assets to £3,699. Shareholders’ funds are minimal but positive, reflecting early-stage capitalisation. The absence of fixed assets suggests a reliance on inventory and possibly leased premises or minimal capital expenditure. Overall, the financial position is fragile but not unsound for a start-up, with a need to monitor long-term liabilities closely.

3. Cash Flow Assessment:
   Cash at bank is low (£1,692), which may limit immediate liquidity. The large inventory holding (£15,500) could potentially be converted into cash but also poses a risk if stock turnover is slow or obsolete. The company’s current liabilities are very low, indicating limited short-term pressure from creditors. The significant long-term creditor balance (£12,500) suggests the company may have external financing or supplier credit arrangements that require careful management. Without detailed cash flow statements or profit and loss data, liquidity risk remains a concern, especially given the company’s infancy and limited cash reserves.

4. Monitoring Points:

• Track liquidity through monthly cash flow statements to ensure adequate cash to meet short-term obligations.
• Monitor stock turnover rates and valuation to avoid overstocking and obsolete inventory risks.
• Review creditor aging and repayment schedule for the £12,500 long-term creditors to assess refinancing or repayment risks.
• Observe sales growth and profitability trends as the company matures beyond its first year of trading.
• Confirm continued compliance with filing deadlines and statutory obligations to avoid regulatory risks.
• Keep watch on the director’s credit conduct and any changes in ownership or control that may affect governance.