KOKREATE LTD

Executive Summary

KOKREATE LTD is a newly formed private limited company with a robust starting balance sheet, showing strong liquidity and positive net assets. The company’s financial position supports credit approval at this stage, though limited trading history warrants ongoing monitoring of cash flow and operational performance. Directors demonstrate sound stewardship with no red flags noted.

KOKREATE LTD - Analysis Report

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.