Company Number: 12761119

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: APPROVE with monitoring. HAARE LIMITED is a micro-entity with a stable and improving net asset position over the last four years, currently reporting positive net current assets and net equity. The company operates in retail sales via mail order or internet, a sector that can be sensitive to economic shifts but also allows for flexible cost structures. The director holds full control, which may streamline decision-making but also concentrates risk. No audit exemption concerns or overdue filings were noted. Given the small scale, low complexity, and positive balance sheet trends, the company appears capable of servicing modest credit facilities. However, due to limited financial scale and absence of detailed profit and loss data, credit exposure should be moderate and accompanied by regular review.

2. Financial Strength: The company’s net assets increased from £101 in 2020 to £5,689 in 2024, demonstrating gradual equity build-up. Current assets slightly decreased from £14,568 in 2023 to £11,652 in 2024, but current liabilities decreased more significantly from £9,692 to £4,763, improving net current assets from £4,876 to £6,889. The company maintains positive working capital and a healthy equity base relative to its size. Share capital is nominal (£100), indicating most equity arose from retained earnings or capital contributions. Absence of long-term liabilities suggests low gearing and reduced solvency risk. Overall, the balance sheet is sound for a micro business.

3. Cash Flow Assessment: Current assets primarily comprise cash, receivables, or stock, while current liabilities are short-term payables. The improvement in net current assets and reduction of creditors indicate better liquidity management and cash flow. However, no cash flow statement is provided, so assessment is limited. The company’s small scale and sector imply cash flow may be somewhat volatile, but current data suggests sufficient liquidity to cover short-term obligations. Working capital is positive and increasing, reducing risk of cash shortages.

4. Monitoring Points:

• Profitability and cash flow trends once profit and loss accounts are available to confirm ongoing debt servicing ability.
• Changes in current liabilities and creditors to watch for any liquidity stress.
• Business growth trajectory and sector risks, particularly given the retail internet sales focus which can be competitive and sensitive to economic cycles.
• Director’s control concentration risk—monitor governance and any changes in ownership or management.
• Timeliness of future filings and any indications of financial distress.