KATY RICHARDSON LTD

Executive Summary

Katy Richardson Ltd is a newly formed small private company with limited trading history but currently maintains a positive net asset position and adequate short-term liquidity. Credit approval is recommended on a conditional basis, with emphasis on monitoring ongoing financial performance and compliance filings to mitigate risk. The business’s small scale and concentrated control suggest careful scrutiny of cash flows and liabilities is essential going forward.

KATY RICHARDSON LTD - Analysis Report

Company Number: 15263769

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Katy Richardson Ltd is a very recently incorporated small private company with modest financial resources and limited trading history. The company currently shows positive net assets and a small working capital surplus, indicating initial financial stability. However, its trading scale is minimal, with only one employee (the director) and limited fixed assets. The absence of an audit and limited financial disclosure constrains a full risk assessment. Approval for credit facilities should be conditional on continued timely filing of accounts and monitoring of trading performance and cash flows as the business establishes itself.

2. Financial Strength:
   The balance sheet as of 30 November 2024 shows total net assets of £2,859, with tangible fixed assets at £633 and net current assets of £2,346. Current assets consist mainly of cash (£12,812) and small debtors (£259), while current liabilities total £10,725, predominantly taxation and social security liabilities (£9,828). The company’s capital structure comprises one £1 ordinary share, fully paid, with accumulated profit reserves of £2,858. The financial position is modest but positive, with equity exceeding liabilities; however, the company’s scale and asset base are very limited.

3. Cash Flow Assessment:
   Cash holdings of £12,812 provide immediate liquidity to meet short-term obligations, including current liabilities of £10,725. The net current asset position suggests adequate working capital coverage at the reporting date. Given the company’s nature (support activities to performing arts) and small staffing level, cash flow volatility may be high, and the business likely relies on ongoing receipts to fund operations. Continuous monitoring of cash flow statements and creditor payments is recommended to ensure ongoing liquidity.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statements to ensure compliance and transparency.
• Evolution of turnover and profitability as the company grows beyond its initial trading period.
• Cash flow trends and working capital management, especially given the current reliance on cash balances.
• Any changes in director or ownership structure that could affect governance or credit risk.
• Potential build-up of tax or other liabilities that could strain liquidity.