Company Number: 14055626

Analysis Date: 2025-07-20 19:14 UTC

1. Credit Opinion: APPROVE
   KAPOOK NGEIN LTD demonstrates solid financial health for a recently incorporated SME in the unlicensed restaurant and café sector. The company exhibits positive net assets and working capital, with cash balances exceeding current liabilities, indicative of good short-term liquidity and ability to meet obligations. The absence of overdue filings, stable management under a single controlling director, and growing net assets support credit approval, albeit with a cautious stance due to the company’s young age and sector risks.

2. Financial Strength:

• Net assets increased markedly from £28,086 in 2023 to £64,705 in 2024, reflecting retained profits or capital injections.
• Tangible fixed assets now include motor vehicles valued net of depreciation at £7,869, indicating investment in operational capacity.
• Shareholders’ funds equal net assets, reflecting no long-term debt, which strengthens the balance sheet.
• Current liabilities decreased from £28,249 to £23,407, while cash increased from £56,335 to £80,243, improving liquidity ratios.

3. Cash Flow Assessment:

• Cash of £80,243 versus current liabilities of £23,407 yields a current ratio of approximately 4.4, a strong liquidity position.
• Net current assets of £56,836 indicate adequate working capital to fund day-to-day operations without reliance on external financing.
• Loans from directors are minimal (£1,618) and likely manageable within cash flow.
• No audit conducted, so cash flow statements are not available; however, cash increases and reduced liabilities suggest positive operating cash flows.

4. Monitoring Points:

• Continued profitability and cash generation to support growth and repayment capacity, especially given the competitive and often high-risk hospitality sector.
• Monitor any increase in trade creditors or director loans that may stress liquidity.
• Track any changes in management or ownership structure, given single director and sole shareholder control.
• Watch sector trends and external risks (e.g., economic downturns affecting discretionary spending).