Company Number: 13549209

Analysis Date: 2025-07-20 17:27 UTC

1. Credit Opinion: APPROVE with conditions.
   Manshi Retail Ltd demonstrates improving financial stability with growing net assets and positive net current assets in the latest year, indicating enhanced liquidity and solvency. However, as a micro-entity with a small workforce and modest asset base, credit exposure should be limited and monitored closely. Approval is contingent on maintaining current cash flow trends and no significant increase in short-term liabilities.

2. Financial Strength:
   The company’s net assets increased from £98,514 in 2023 to £112,268 in 2024, reflecting retained earnings or capital injections. Fixed assets slightly decreased but remain substantial relative to total assets. Current liabilities fell significantly from £124k to £83k, improving working capital from a slightly negative position to a positive £13,317. Long-term liabilities also reduced, supporting an improved debt profile. Overall, the balance sheet shows a strengthening capital structure and moderate gearing.

3. Cash Flow Assessment:
   Current assets decreased from £122,686 to £96,565, but the reduction in current liabilities was more significant, leading to improved net current assets and liquidity. The positive working capital suggests the company can meet short-term obligations comfortably. The average number of employees reduced slightly, possibly indicating cost control measures. While exact cash flow figures are not provided, the balance sheet movement implies better cash management and operational cash generation.

4. Monitoring Points:

• Monitor trade creditors and other current liabilities to ensure they do not increase sharply, which could strain liquidity.
• Watch cash conversion cycles and debtor days to confirm ongoing cash flow adequacy.
• Track any changes in fixed assets to assess capital expenditure and asset utilization.
• Keep an eye on revenue and profitability trends as filings become available, given the limited size and scope of operations.
• Observe director and shareholder activity for any changes impacting control or financial support.