Company Number: 14126156

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: APPROVE
   KOCHEDA LTD shows a stable and improving financial position typical of a micro entity in early growth stages. The company maintains positive net current assets and equity with no fixed assets or long-term liabilities, indicating conservative financial management and low leverage risk. The consistent increase in net assets year-on-year suggests prudent financial stewardship and capacity to meet obligations. Given the absence of overdue filings and ongoing active status, the risk of default is low.

2. Financial Strength:
   The balance sheet reflects a solid micro-entity structure. Total net assets increased from £5,875 in 2021 to £13,418 in 2024, demonstrating a strengthening equity base. The company carries no fixed assets and no long-term debt, minimizing financial risk. Current assets primarily consist of cash or equivalents (£27,055 in 2024) versus current liabilities of £13,637, resulting in positive working capital of £13,418. This healthy liquidity buffer supports operational stability.

3. Cash Flow Assessment:
   The company’s net current assets have grown steadily, indicating positive cash flow from operations or capital injections. With current assets roughly double current liabilities, liquidity is sufficient to cover short-term obligations. The micro entity status and single employee suggest low overheads and manageable working capital requirements. Although detailed cash flow statements are unavailable, the balance sheet implies no immediate cash flow stress.

4. Monitoring Points:

• Continue monitoring working capital trends to ensure liquidity remains robust as the company grows.
• Watch for any emerging fixed assets or long-term liabilities that may affect credit risk.
• Track turnover and profitability metrics (not provided here) to assess operational cash generation.
• Ensure timely filing of accounts and confirmation statements to avoid administrative penalties.
• Keep an eye on sector developments in artistic creation and IT consultancy for potential market risks.