Company Number: 15804816

Analysis Date: 2025-07-29 12:08 UTC

1. Credit Opinion: APPROVE – KOKREATE LTD shows a solid financial foundation for a newly incorporated SME with positive net assets and strong working capital. The absence of debt beyond short-term creditors and a clear going concern statement indicate low immediate credit risk. However, as a start-up with limited trading history, cautious monitoring is advised.

2. Financial Strength: The balance sheet as of 30 April 2025 shows net assets of £13,909, predominantly composed of cash (£17,423) and minimal fixed assets (£948). Current liabilities are modest (£4,282), resulting in net current assets of £13,141. Shareholder funds equal net assets, reflecting no external borrowings. The capital structure is clean with no long-term debt, providing financial stability but limited leverage for expansion.

3. Cash Flow Assessment: Cash at bank of £17,423 comfortably covers current liabilities of £4,282, indicating strong liquidity and working capital sufficiency. The company employs two staff, suggesting manageable overheads. Given the service-oriented nature (consultancy and software development), working capital needs are low, and cash generation appears adequate for current operations.

4. Monitoring Points:

• Track revenue growth and profitability as trading history lengthens to ensure sustainability.
• Monitor cash flow closely to confirm ongoing liquidity, especially as business scales or invests.
• Watch for any increase in short-term liabilities that might pressure working capital.
• Review director management and control as they hold significant equity and operational roles.
• Ensure timely filing of accounts and compliance as business matures.