LONDONPOSER LTD

Executive Summary

Londonposer Ltd demonstrates a sound financial position for a newly incorporated entity with strong liquidity and low leverage. The company’s ability to meet short-term obligations is currently adequate, supported by substantial cash reserves and net current assets. Given limited trading history, credit exposure should be conservative with ongoing monitoring of operational performance and working capital management.

LONDONPOSER LTD - Analysis Report

Company Number: 15473524

Analysis Date: 2025-07-19 12:45 UTC

1. Credit Opinion: APPROVE
   Londonposer Ltd is a newly incorporated private limited company engaged in retail sale of clothing in specialised stores. Its latest financials show a positive net asset position of £47,722 with net current assets of £44,478, indicating solid short-term liquidity. The company currently has no significant debt (only £127 bank loans and overdrafts) and a healthy cash balance (£79,028). Given its current financial position, absence of overdue filings, and single director/shareholder with full control, the company appears to have a sound foundation to meet short-term credit obligations. However, as a start-up with limited trading history, credit exposure should be cautiously sized and monitored.

2. Financial Strength:
   The balance sheet is healthy for a first-year operation, showing fixed assets of £4,158 and current assets of £93,431, principally cash and stock. Current liabilities total £48,953, including taxation and social security liabilities of £30,694, which the company appears capable of meeting given the cash and net current assets position. Shareholders’ funds of £47,722 reflect initial equity injection and retained earnings. The minimal bank borrowing reduces financial risk. Overall, the company’s financial strength is satisfactory but typical of an early-stage business with limited operating history.

3. Cash Flow Assessment:
   The company holds £79,028 in cash, representing a strong liquidity position relative to its current liabilities of £48,953. This provides comfortable working capital coverage. Debtors are low (£2,850), and stock levels (£11,553) appear reasonable for a retail clothing business. The cash to current liabilities ratio (>1.6) indicates good short-term liquidity, which is critical for ongoing operational cash flow management. The relatively low borrowings limit financial leverage risk.

4. Monitoring Points:

• Monitor future trading performance and turnover growth as the company develops beyond start-up phase.
• Watch tax and social security liabilities to ensure they are settled timely, given their material size relative to current liabilities.
• Assess stock turnover and debtor collection efficiency to maintain healthy working capital cycles.
• Observe any new borrowings or changes to capital structure that may impact financial flexibility.
• Track director’s credit conduct and any related party transactions given single-person control.