IM NATURAL SPORTS SERVICES LIMITED

Executive Summary

IM Natural Sports Services Limited is a very new, small-scale entity with positive initial working capital and liquidity but limited operating history. Conditional credit approval is advised, with cautious exposure and close monitoring of cash flow and trading performance to mitigate risk. The company’s financial position is currently stable but fragile given its size and early stage of development.

IM NATURAL SPORTS SERVICES LIMITED - Analysis Report

Company Number: 15201677

Analysis Date: 2025-07-29 20:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   IM Natural Sports Services Limited is a newly incorporated entity (October 2023) with a very limited financial history. The latest accounts show positive net current assets of £3,368 and positive shareholders’ funds of the same amount, indicating initial capitalisation and working capital adequacy. However, given the company’s infancy, absence of trading history, and small scale of operations, credit exposure should be limited and monitored carefully. Approval may be granted with conditions such as low credit limits, regular financial updates, and possibly personal guarantees from the 75-100% shareholder, Mr. Ian Morton.

2. Financial Strength:
   The balance sheet as of 31 October 2024 shows total current assets of £11,097, primarily cash (£11,096), against current liabilities of £7,729. This results in net current assets (working capital) of £3,368, which is positive but modest. The company has no fixed assets and minimal trade debtors (£1), indicating limited operational scale. Shareholders' funds equal net assets at £3,368, reflecting initial equity funding. The absence of long-term liabilities reduces financial risk. Overall, the company’s financial strength is nascent and fragile due to its size and early stage.

3. Cash Flow Assessment:
   The company holds nearly all current assets in cash, which is favorable for liquidity and meeting short-term obligations. Current liabilities are relatively low and primarily consist of taxation/social security (£790) and other creditors (£6,939). The positive net current assets imply the company can meet immediate debts. However, lack of trading income or cash flow history limits confidence in sustained cash generation. Close monitoring of cash flow projections and creditor payments is recommended as the business develops.

4. Monitoring Points:

• Monthly or quarterly cash flow statements to ensure liquidity is maintained.
• Update on revenue generation and profitability as trading progresses.
• Changes in creditor balances and payment terms to assess working capital management.
• Any new borrowing or credit facilities and related servicing capacity.
• Director’s and shareholder’s ongoing financial support or capital injections if needed.