I&D CLOTHING BRAND LTD

Executive Summary

I&D Clothing Brand Ltd is a micro-scale wholesale clothing company with very limited financial resources but a stable, solvent balance sheet and modest turnover growth. The business shows capability to meet current obligations but operates with tight margins and minimal cash flow buffer. Approval for small credit facilities is reasonable with ongoing monitoring of profitability and working capital recommended.

I&D CLOTHING BRAND LTD - Analysis Report

Company Number: 13149746

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: APPROVE with caution. I&D Clothing Brand Ltd is a micro private limited company operating in wholesale clothing and footwear. The company has demonstrated modest but positive turnover growth from £33,684 (2024) to £43,280 (2025) and reported a very small profit (£20) in the latest period. It has minimal liabilities and positive net assets (£16), indicating minimal financial risk at this scale. However, the absolute financial scale is very small, limiting credit exposure size and requiring tight monitoring. The company’s ability to service significant debt is unproven, but it appears capable of meeting current obligations with its limited working capital.

2. Financial Strength: The balance sheet is extremely small but stable. Net assets increased from £1 to £16 year-on-year, reflecting some retained earnings. Current assets (£20) cover current liabilities (£4) leaving net current assets of £20 (likely due to rounding or presentation). There are no long-term liabilities aside from a small creditor balance of £4. The share capital is nominal (£1), typical for micro entities. The company employs 4 people, indicating some operational scale within the micro category. Overall, the financial position is tight but solvent with no signs of distress or over-leverage.

3. Cash Flow Assessment: Current assets are minimal (£20) and likely mostly cash or equivalents given the micro size and no mention of stock or receivables. Current liabilities are very low (£4), indicating minimal short-term debt pressure. The company generated a small positive profit but incurred significant staff costs (£35,790) and other charges (£7,470) against turnover, suggesting tight margins and limited cash flow cushion. Liquidity appears sufficient for current operations but would be vulnerable to any downturn or unexpected expenses. Additional working capital or credit facilities would enhance resilience.

4. Monitoring Points:

• Turnover and profitability trends: Continued growth beyond £43k turnover and moving to sustainable profit margins.
• Working capital dynamics: Ensure current assets remain sufficient to cover liabilities and operating costs.
• Director changes and control: Note the director changes in early 2023 and concentration of control with Mrs. Dorel Dumitru and trust arrangements.
• Staff costs vs. revenue: High staff costs relative to turnover could pressure cash flow; monitor for efficiency improvements.
• Filing compliance: Accounts and confirmation statements are current; maintain timely filing to avoid penalties.