Company Number: 14120350

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: APPROVE with close monitoring. Happy Mojos Ltd is a micro private limited company active since 2022, operating in the wellbeing, childcare, and educational support sectors. The company has demonstrated a significant turnaround from net liabilities (£83) in 2023 to positive net assets (£18,697) in 2024, indicating improving financial health. The current asset base and working capital position support short-term liquidity. However, the company remains small with limited fixed assets and a modest capital base. The directors appear engaged with no adverse conduct records. Given the early stage of the business and modest scale, credit approval should be conditional on continued positive trading and timely financial updates.

2. Financial Strength: The balance sheet at 31 May 2024 shows total fixed assets of £1,184 and current assets of £35,942, with current liabilities of £14,011. This results in net current assets (working capital) of £26,416, a healthy liquidity buffer for this size of business. After accounting for longer-term creditors (£7,250) and accruals (£1,653), net assets stand at £18,697, a marked improvement from a slight net liability position in the prior year. Shareholders' funds are positive, reflecting retained profits or capital injection. The asset base is modest, reflecting the company's micro size and nature of operations. There is no indication of significant gearing or financial distress.

3. Cash Flow Assessment: Current assets primarily comprise cash and equivalents or receivables, supporting operational liquidity. The net current asset position of £26,416 indicates sufficient working capital to cover short-term obligations comfortably. The current liabilities have decreased slightly year-on-year, suggesting stable or improving creditor management. No details on cash flow statements are provided, but the increase in current assets and net assets suggests positive cash flow from operations or capital funding. Monitoring incoming cash flows and receivables aging will be important given the service-oriented business model.

4. Monitoring Points:

• Continued positive profitability and net asset growth in subsequent periods.
• Timely filing of next accounts and confirmation statements to ensure compliance.
• Working capital levels and creditor days to confirm liquidity is maintained.
• Any changes in director appointments or control, especially given the high ownership concentration.
• Industry risks associated with wellbeing and childcare sectors, including regulatory changes or seasonal demand fluctuations.
• Impact of any external economic pressures on discretionary consumer spending affecting revenue.