Company Number: 13810937

Analysis Date: 2025-07-20 15:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Murrells Bakery Ltd is a recently incorporated micro-entity operating in the take-away food sector. The company shows consistent positive net assets and modest but improving working capital over the past three years. However, the absolute scale of the balance sheet and current assets is very small (£5,501 current assets in 2024), indicating limited financial buffer and scale. Given the sector’s generally low asset intensity and the company’s small size, the ability to service medium or large credit facilities appears constrained. Credit approval is feasible but should be limited in amount and subject to ongoing monitoring of cash flow and trading performance.

2. Financial Strength:
   The company’s balance sheet is very modest, with net assets increasing from £571 at incorporation in 2021 to £5,502 at the end of 2024. This reflects a gradual accumulation of equity or retained profits but remains low in absolute terms. No fixed assets are reported, and the company’s capital structure consists almost entirely of share capital and reserves. There are no reported liabilities beyond current liabilities implied by net current assets figures. Overall, the financial position is stable but fragile due to the very low asset base and limited capital.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £5,501, indicating positive working capital and a basic ability to meet short-term obligations. The average employee count of 4 suggests a small operational scale, which typically requires tight cash flow management. The increase in current assets year on year signals some cash accumulation or receivables growth. However, no detailed cash flow statement is available. The liquidity position suggests the company can cover immediate operating expenses but may lack flexibility for unexpected outflows or rapid growth financing.

4. Monitoring Points:

• Growth in turnover and profitability to strengthen equity and cash generation
• Maintenance of positive net current assets amidst any business expansion
• Timely filing of future accounts and confirmation statements to ensure compliance
• Any changes in director or PSC status that might impact governance
• External market conditions affecting take-away food demand and input costs