LAURA RATHBONE LIMITED

Executive Summary

Laura Rathbone Limited is a small, active private company with stable but limited financial resources. Its balance sheet shows positive but minimal net current assets and shareholders’ funds, indicating low financial resilience. Approval for credit is possible with conditions focusing on close liquidity monitoring and ensuring the company maintains adequate working capital to meet its obligations.

LAURA RATHBONE LIMITED - Analysis Report

Company Number: 13518483

Analysis Date: 2025-07-29 17:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Laura Rathbone Limited is a recently incorporated small private limited company with modest financial resources and limited operating history. While it maintains a positive net current asset position and no overdue filings, its low working capital margin and narrow equity base suggest restricted financial flexibility. Approval is recommended with conditions, notably requiring regular monitoring of cash flows and liabilities, and assurance that the company can maintain liquidity for debt servicing.

2. Financial Strength:
   The company’s balance sheet at 31 March 2024 shows total current liabilities of £9,023 against current assets (cash) of £9,955, resulting in net current assets of only £932. Shareholders’ funds equal £932, indicating minimal retained earnings and equity cushion. The company’s asset base is almost entirely liquid cash, with no fixed assets reported, reflecting a lightweight asset structure typical of service firms. This limited equity and asset base restricts the company’s ability to absorb financial shocks or secure significant external financing.

3. Cash Flow Assessment:
   Cash balances decreased from £12,543 in 2023 to £9,955 in 2024, while current liabilities also reduced from £11,669 to £9,023. The positive but small net working capital implies tight liquidity management. Given the company’s single-employee structure and limited scale, cash flow volatility could impact its ability to meet short-term obligations. There is no indication of overdraft or external debt, which is positive, but the narrow cash buffer necessitates prudent cash flow monitoring.

4. Monitoring Points:

• Monitor quarterly cash flow trends to ensure liquidity remains positive and sufficient to cover current liabilities.
• Track changes in current liabilities, especially taxation and social security obligations, which constitute a large portion of short-term debts.
• Watch for any significant changes in capital structure or introduction of external debt that could affect repayment capacity.
• Confirm the company maintains timely filing compliance and there are no director conduct or legal issues.
• Review any operational expansion plans that might increase overheads or working capital requirements.