Company Number: 12695539

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: APPROVE with monitoring.
   MEMIS PIZZA LIMITED demonstrates a stable financial position with positive net assets and a modest but improving working capital position in the latest year. The company operates in a resilient food takeaway sector with steady staffing levels and no overdue filings or compliance issues. While the net current assets margin is thin (£243 in 2024), the overall net assets have nearly doubled from £22,701 in 2023 to £42,292 in 2024, indicating strengthening financial health. The single director’s background as a caterer suggests operational expertise aligned with the business. Given the company’s micro-entity status and modest scale, credit facilities should be approved with caution and a requirement for periodic review to ensure continued cash flow adequacy.

2. Financial Strength:
   The company’s balance sheet shows growth in fixed assets from £38,646 in 2023 to £42,049 in 2024, suggesting ongoing investment in long-term resources. Current assets rose significantly from £14,739 to £27,838, while current liabilities decreased from £30,684 to £27,595. This shift turned a previously negative net current asset position (-£15,945 in 2023) into a positive but minimal working capital position (£243 in 2024), signaling improved short-term financial stability. Net assets increased from £22,701 to £42,292 year-on-year, bolstered by retained earnings or capital injections, strengthening shareholders’ equity. Overall, the balance sheet reflects an improving financial foundation though current liquidity remains tight.

3. Cash Flow Assessment:
   Current assets mainly comprise cash, stock, and debtors; however, the marginal net current assets indicate limited liquidity buffer. The company’s ability to cover short-term obligations is just above break-even, which could challenge cash flow management during unexpected expenses or downturns. The consistent staffing level (7 employees) implies stable operating costs. The absence of overdue returns and timely filing suggests disciplined administrative and financial management, which supports prudent cash flow control. Careful monitoring of receivables collection and payable cycles will be essential to maintain liquidity.

4. Monitoring Points:

• Working Capital: Monitor net current assets closely to ensure they do not turn negative again, as this would impair short-term payment capability.
• Profitability Trends: Review future P&L data to confirm that equity growth is supported by sustainable earnings, not just capital injections.
• Cash Flow Management: Track cash flow statements for evidence of sufficient operational cash generation.
• Director Stability and Governance: Maintain oversight on director conduct and business strategy execution given single director governance.