Company Number: 13083522

Analysis Date: 2025-07-29 20:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Merete Hass Ltd demonstrates solid net asset backing and positive working capital at year-end 2023, reflecting a stable financial position in its veterinary services business. However, the significant decline in cash balance from £55k to £12k, combined with a large director’s loan overdraft (£41k) raises some liquidity management concerns. The company is relatively young (incorporated 2020) with improving net current assets (£181k in 2023 vs £8k in 2022), but the director loan overdraft suggests reliance on related party funding which could impact operational cash flow. Credit approval can be considered subject to monitoring liquidity closely and ensuring no further deterioration in cash flow or increase in related party debt.

2. Financial Strength:

• Net Assets remain healthy at £181k as of December 2023, down slightly from £208k in 2022, showing some reduction in retained earnings but still positive equity.
• Net Current Assets show a marked improvement from £8k (2022) to £181k (2023), driven by increased debtors (£174k) and sharply reduced current liabilities (£4.7k). This suggests the company is managing short-term obligations well.
• Fixed assets are negligible, implying limited capital expenditure or reliance on intangible or service-based assets.
• Share capital is minimal (£100), consistent with a small private company structure.

3. Cash Flow Assessment:

• Cash at bank decreased significantly from £55k to £12k, which is a warning sign on liquidity despite strong net current assets driven by debtors.
• Debtors are high (£174k), indicating dependence on collection from customers; any delays here could strain liquidity.
• Current liabilities are low (£4.7k), reducing immediate payment pressure.
• The notable overdraft on the director’s loan account (£41k) indicates internal financing to cover liquidity gaps; while interest is charged at commercial rates, this reliance could impair financial flexibility if not managed.

4. Monitoring Points:

• Cash flow and cash balances on a monthly basis to ensure liquidity remains sufficient to cover short-term obligations without further director loans.
• Debtor aging analysis to monitor collection efficiency and avoid bad debts.
• Director loan account balances and terms to ensure this related party funding does not mask underlying liquidity issues.
• Profitability trends and reserves movement in subsequent filings to confirm business growth and self-sufficiency.
• Compliance with filing deadlines (currently up to date) to avoid regulatory penalties.