Company Number: 13132763

Analysis Date: 2025-07-20 12:22 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Haworth Composites Ltd is a very small micro-entity with limited financial history but shows steady positive net current assets and net assets over the last three years. The company has a single director and shareholder controlling 100% of voting rights, implying centralized management with clear accountability. However, the very low equity base (£214) and minimal asset size restrict its capacity to absorb financial shocks or support significant borrowing. Credit should be extended with caution, preferably with security or guarantees, and limits should be modest relative to its scale.

2. Financial Strength:
   The company’s balance sheet reflects a micro-sized business with total net assets of £214 as at 31 January 2024, slightly improved from £183 the previous year. Current assets have more than doubled to £12,090, while current liabilities also increased but remain marginally lower, maintaining a positive net working capital of £1,368. The absence of fixed assets and reliance on current assets suggests limited capital investment and a likely operating model based on short-term contracts or services. The retained earnings and shareholders’ funds are minimal but positive, indicating no accumulated losses to date.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables, sufficient to cover current liabilities with a current ratio of approximately 1.13 (2024). The net current asset position improved significantly from £183 to £1,368, which is positive for liquidity. However, the absolute values involved are very small, and any unexpected cash outflow could strain liquidity. The company employs only one person (the director), controlling costs tightly. Working capital management appears stable but with limited buffer, so cash flow monitoring should be frequent.

4. Monitoring Points:

• Watch developments in current liabilities relative to current assets to ensure liquidity remains positive.
• Monitor any increase in operational scale that might require raising working capital or fixed assets funding.
• Review director remuneration and related party transactions for any cash flow impact.
• Confirm timely filing of accounts and confirmation statements to assess ongoing compliance and business continuity.
• Observe any changes in ownership or management that could affect governance and financial discipline.