MUSE INCENSE LTD

Executive Summary

MUSE INCENSE LTD is a newly incorporated micro-entity with a modest but positive financial position, showing adequate working capital and net assets. The company’s limited trading history and size warrant cautious credit exposure and close monitoring of cash flow and profitability as it establishes its market presence. Given the sound initial balance sheet and committed ownership, limited credit facilities could be approved with ongoing review.

MUSE INCENSE LTD - Analysis Report

Company Number: 14762750

Analysis Date: 2025-07-19 12:15 UTC

1. Credit Opinion: APPROVE with caution. MUSE INCENSE LTD is a micro-entity incorporated recently (March 2023) and has filed its first accounts for the year ended March 2024. The company shows positive net assets and working capital, indicating initial financial stability. However, as a new business with limited trading history and modest asset size, credit exposure should be limited and closely monitored. The sole director and 100% shareholder appears personally invested, which is positive for financial stewardship but also concentrates business risk.

2. Financial Strength: The balance sheet exhibits total net assets of £1,103, comprised of minimal fixed assets (£326) and current assets of £5,344 against current liabilities of £4,567, yielding net current assets of £777. The positive net assets and working capital show the company is solvent and has a buffer to meet short-term obligations. The micro classification and small balance sheet size are typical of a start-up retail business. No long-term debt or provisions are recorded, indicating low leverage and limited financial risk on the balance sheet.

3. Cash Flow Assessment: Current assets largely consist of cash or receivables, providing liquidity to cover immediate liabilities. Net current assets of £777 imply positive working capital, supporting ongoing operations. The company employs 2 staff, so payroll and operational cash flow demands appear manageable. However, without detailed cash flow statements or profit and loss data, assessing sustainability of cash generation is limited. Early signs suggest adequate liquidity but monitoring cash inflows and outflows will be important as trading scales.

4. Monitoring Points:

• Trading performance and profitability in the next 12 months to verify sustainable cash generation.
• Timely filing of next accounts and confirmation statements to ensure compliance.
• Changes in director or ownership structure given sole director/shareholder model.
• Working capital trends and cash flow statements once available to assess liquidity.
• Any increase in liabilities or debt levels that may impact solvency or repayment capacity.