Company Number: 13178581

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hunter Whins Limited is a recently incorporated (2021) private limited company operating in cattle raising (SIC 1420). It demonstrates modest but improving net asset growth and positive working capital, indicating a cautiously improving financial position. However, the company’s current liabilities are substantial relative to current assets, with tight liquidity margins. The directors have maintained timely filings, and there are no disqualifications or adverse governance flags. Credit approval can be considered with conditions including monitoring liquidity closely and ensuring timely repayment of short-term obligations.

2. Financial Strength:
   The balance sheet shows net assets increased from £5,843 in 2023 to £11,438 in 2024, indicating retained earnings growth. Tangible fixed assets have grown, reflecting investment in plant and equipment. Current assets of £64,720 mainly comprise stock (£35,532) and cash (£28,068), while current liabilities stand at £62,151, leading to net current assets of only £2,569. The company’s equity base is small but growing, with shareholders’ funds matching net assets. The balance sheet is stable but tight, with limited buffer for unexpected financial stress.

3. Cash Flow Assessment:
   Cash at bank increased from £24,214 to £28,068, which is a positive sign of liquidity improvement. However, the company’s current liabilities are near parity with current assets, indicating working capital is narrowly positive and potentially sensitive to collection delays or stock valuation changes. Debtors are minimal (£1,120), suggesting limited credit risk from customers but also limited receivables turnover. Stock levels have decreased slightly, which may improve cash conversion. Overall, liquidity is adequate but requires close management.

4. Monitoring Points:

• Watch the ratio of current liabilities to current assets to avoid liquidity strain, especially as the company relies heavily on stock and cash for working capital.
• Monitor profitability and retained earnings growth to build equity cushion.
• Review cash flow timing to ensure obligations can be met without reliance on overdrafts or emergency financing.
• Keep an eye on directors’ actions and governance for any changes that could impact financial discipline.
• Assess external market conditions in cattle raising that may affect revenue and margins.