Company Number: 14226095

Analysis Date: 2025-07-20 12:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Kaffeebar Ltd is a very young private limited company incorporated in July 2022, operating in wholesale trade of coffee equipment and related products. Its latest filed accounts to 31 May 2024 show a significant turnaround from prior periods, moving from net liabilities of £5,682 to net assets of £17,853. The company currently demonstrates a positive working capital position and improved equity, indicating initial business traction. However, the absence of an audit, minimal operating history, and reliance on directors' current accounts (loans) totaling £10,324 raise some credit risk concerns. Approval is recommended with conditions including ongoing monitoring of cash flow, receivables collection, and confirmation of profitability trends to ensure sustainable debt servicing capability.

2. Financial Strength:

• Net Assets improved from negative £5,682 in 2023 to positive £17,853 in 2024, reflecting retained earnings of £17,753.
• Current assets at £33,002 are predominantly debtors (£31,824), indicating significant amounts due from customers or contracts, with minimal cash (£38) and stock (£1,140).
• Current liabilities increased to £15,149, including directors’ current accounts of £10,324 and tax liabilities of £4,326, showing some dependence on director funding and tax obligations.
• Overall, the balance sheet shows improving equity and working capital but is vulnerable due to low cash reserves and high debtor concentration.

3. Cash Flow Assessment:

• Cash at bank is minimal (£38), which suggests limited immediate liquidity.
• Debtors form the bulk of current assets, so timely collection of these amounts is critical for liquidity.
• Current liabilities are manageable relative to current assets, but the director loans indicate potential funding gaps.
• No employees are recorded, implying low overheads but also limited operational scale.
• The company’s ability to meet short-term obligations depends on conversion of debtors to cash and ongoing support from directors if needed.

4. Monitoring Points:

• Debtor aging and collection efficiency: ensuring receivables do not become overdue or impaired.
• Cash flow trends in subsequent periods, especially actual cash inflows versus reported debtors.
• Directors’ current account balances to monitor reliance on internal loans.
• Profitability and revenue growth to confirm the positive equity trajectory is sustainable.
• Tax liabilities and compliance to avoid unexpected claims or penalties.
• Filing of future accounts and confirmation statements on time to maintain regulatory compliance.