Company Number: 13984994

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Little Loads Ltd is an active private limited company operating in the non-hazardous waste collection sector. The company is relatively new, incorporated in 2022, and has shown modest growth in net assets from £4,787 in 2023 to £8,305 in 2024. However, the company demonstrates persistent net current liabilities (negative working capital) of approximately £39,700, indicating short-term liquidity pressure. Director loans constitute a significant portion of current liabilities (£31,057 in 2024), which may provide some flexibility but also signals reliance on internal financing. The change in directorship in 2024 has not yet affected financial stability materially, but monitoring management continuity is advised. Given these factors, credit facilities should be extended conditionally, with restrictions on exposure size and close monitoring of liquidity and operational cash flows.

2. Financial Strength:
   The balance sheet shows total fixed assets of £52,027, including goodwill (£36,000) and tangible assets (£16,027). The company carries no long-term liabilities reported, but current liabilities remain high relative to current assets, resulting in a working capital deficit of approximately £39,716 in 2024, consistent with the previous year. Shareholders' funds have increased but remain modest at £8,305, reflecting limited retained earnings. The capital structure relies heavily on director current accounts, which are repayable on demand and thus represent a risk if these funds are withdrawn. Overall, the company’s financial strength is moderate, with a small equity base and liquidity risks that need mitigation.

3. Cash Flow Assessment:
   Cash at bank has declined from £23,955 in 2023 to £12,777 in 2024, reducing immediate liquidity. Current liabilities remain high, with significant amounts owed to directors and other creditors. Negative net current assets highlight pressure on short-term cash resources. Without detailed profit and loss or cash flow statements, it is difficult to fully assess operational cash generation, but the balance sheet indicates ongoing reliance on director funding to meet obligations. The company’s ability to meet short-term liabilities from operational cash flow is a concern, suggesting potential need for improved working capital management or external financing.

4. Monitoring Points:

• Liquidity trends: Watch cash balances and current liabilities closely, especially director loans and creditor payments.
• Working capital management: Improvement in net current assets is critical for financial stability.
• Profitability and cash flow: Obtain and review profit and loss and cash flow statements when available to assess core business performance.
• Management changes: Monitor impact of director transition on company strategy and financial management.
• Creditors ageing and payment behavior: Ensure timely payments to suppliers and directors to avoid liquidity stress or reputational risk.