Company Number: 14458687

Analysis Date: 2025-07-29 12:11 UTC

1. Credit Opinion: APPROVE. Little Rest Limited demonstrates a solid micro-entity financial profile with positive net assets and a strong working capital position. The company shows growth in net assets and net current assets over the last year, indicating sound financial management and improving liquidity. There are no overdue filings or governance concerns, and the sole director holds full ownership and control, suggesting stable leadership. Given its micro size and early stage (incorporated Nov 2022), credit exposure should be moderate and closely monitored, but current financials support credit approval.

2. Financial Strength: The company’s balance sheet as of 30 November 2024 shows net assets of £21,222, nearly doubling from £11,873 the previous year. Fixed assets are minimal (£446), which is typical for a service business in hairdressing and beauty treatments. Current assets increased from £29,618 to £39,546, while current liabilities rose slightly from £18,212 to £18,770, resulting in net current assets (working capital) of £20,776, an 82% improvement year-on-year. The capital structure is entirely equity-funded with no long-term debt reported, indicating low financial risk.

3. Cash Flow Assessment: Current assets mainly comprise cash and receivables, supporting liquidity. The net current assets position of £20,776 suggests the company can comfortably meet short-term obligations. The minimal accruals/deferred income also imply limited deferred liabilities. The company operates with only one employee (the director), which helps keep fixed overheads low and cash flow manageable. However, as a small start-up, cash flow volatility risk remains, so monitoring cash conversion cycles and receivables collections is recommended.

4. Monitoring Points:

• Track working capital trends to ensure liquidity remains strong with business growth.
• Monitor any increase in liabilities or borrowing that could affect solvency.
• Observe revenue and profit trends in future accounts to confirm financial trajectory.
• Watch for director or ownership changes that could impact governance or control.
• Review compliance with filing deadlines to avoid penalties or regulatory risk.