HKE TRADERS LTD

Executive Summary

HKE TRADERS LTD is a newly established micro-entity with a modest but positive financial position reflected by net assets of £1,420 and healthy working capital. The company shows no immediate credit concerns but is limited by its very small scale and short trading history. Conditional credit approval is recommended with conservative limits and ongoing monitoring of financial performance and liquidity.

HKE TRADERS LTD - Analysis Report

Company Number: 14358218

Analysis Date: 2025-07-29 20:09 UTC

1. Credit Opinion: APPROVE with caution. HKE TRADERS LTD is a very recently incorporated micro-entity (since Sept 2022) operating in retail sale via internet/mail order. Its financial position at the first accounting reference date shows a positive net asset base of £1,420 and positive net current assets of £630, indicating it has some working capital buffer. Although the business scale is very small and the financial data limited, there are no signs of distress or overdue filings. The sole director and majority shareholder appears to be actively managing the business. However, the company’s limited trading history and small asset base suggest that credit limits should be modest and reviewed regularly.

2. Financial Strength: The balance sheet shows total fixed assets of £790 and current assets of £550, including prepayments of £80. Current liabilities are minimal (implied by net current assets of £630), resulting in net assets of £1,420. Shareholders funds mirror net assets, indicating no external debt. The financial structure is simple and conservative, with no leverage or long-term liabilities. The micro-entity status means detailed disclosures are limited, but the company currently maintains a positive equity position. Given the small scale and recent incorporation, the financial strength is adequate for its size but insufficient for large credit exposure.

3. Cash Flow Assessment: Current assets of £550 against current liabilities that result in net current assets of £630 imply working capital adequacy at this early stage. The balance sheet suggests the company holds more short-term assets than short-term obligations. However, the absolute cash or liquid assets figure is low, and there is only one employee (the director), which limits overhead costs. Given the limited data, cash flow from operations cannot be fully assessed, but no red flags exist. Monitoring cash flow closely is advised to ensure ongoing liquidity, especially as the business grows.

4. Monitoring Points:

• Monitor quarterly updates on turnover and profitability as the company expands beyond its first year.
• Watch for any increases in current or long-term liabilities that could strain liquidity.
• Review director conduct and related-party transactions given the single director/shareholder structure.
• Ensure timely filing of future accounts and confirmation statements to avoid compliance risk.
• Observe working capital trends and cash flow statements when available to assess operational cash generation.