Company Number: 14705506

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: APPROVE with caution. Kojiro Ltd is a newly incorporated micro-entity (since March 2023) operating in the retail sale via internet sector. The company shows positive net current assets and net assets, indicating initial financial stability. However, given its very recent start, limited trading history, and small scale (one employee), credit risk is moderate. Approval is recommended for modest credit facilities with monitoring, as the company’s ability to generate sustainable cash flows is not yet proven.

2. Financial Strength: The balance sheet as of 31 March 2024 shows current assets of £17,675 against current liabilities of £10,887, yielding net current assets (working capital) of £6,788. Total net assets and shareholders’ funds stand at £5,588, reflecting modest capitalization with no long-term liabilities reported. The company has no fixed assets or long-term debt, consistent with its micro size and young age. Overall, the balance sheet is sound for a start-up with no signs of financial distress, but the limited asset base and equity mean financial strength is currently low.

3. Cash Flow Assessment: Current assets primarily include cash and short-term receivables (likely trade debtors or prepayments). The positive net current assets indicate the company can meet short-term obligations. However, the small absolute cash reserves and modest liabilities suggest liquidity is tight and dependent on ongoing operational cash generation. No historical cash flow data is available, so liquidity risk remains until trading performance is established. Working capital management should be closely monitored to avoid cash flow constraints.

4. Monitoring Points:

• Revenue growth and profitability trends in the next 1-2 years to confirm business viability.
• Cash flow statements and bank balances to assess liquidity management.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Changes in directors or ownership that may impact governance or financial stability.
• Any increase in liabilities or overdrafts that could stress the balance sheet.
• Market conditions affecting internet retail sales impacting revenue.