Company Number: 12600817

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: APPROVE
   NAAP LIMITED is a micro private limited company with a stable and positive net asset position that has improved significantly in the latest financial year. The company shows no overdue filings and is active with no insolvency proceedings. The director is a chartered accountant which suggests competent financial management. Although the company's scale is small, the positive net current assets and shareholders' funds imply good short-term financial health and capacity to meet liabilities. The absence of employees and fixed assets suggests a low operating overhead, reducing risk. Given these factors, credit approval is warranted for modest facilities, contingent on continued monitoring.

2. Financial Strength:
   The balance sheet as of 31 May 2024 shows total net assets of £423, up from £9 the prior year, indicating growth in working capital. Current assets increased from £9 to £636, while current liabilities remain low at £213. The company holds no fixed assets. The positive net current assets (£423) indicate sufficient liquidity to cover short-term liabilities. Shareholders' funds mirror net assets at £423, reflecting retained earnings or capital injections supporting solvency. The micro-entity scale limits asset base depth but financial position is improving.

3. Cash Flow Assessment:
   Current assets primarily consist of cash or equivalents given the lack of debtors or inventory disclosures, with very low liabilities, providing a solid liquidity buffer. The working capital position is positive and increased substantially in the latest year. No employees suggest limited payroll outflows, supporting low operating cash requirements. While detailed cash flow statements are unavailable, the balance sheet movements imply adequate cash inflows or capital contributions to support operations.

4. Monitoring Points:

• Continue monitoring net current assets and cash balances to ensure liquidity is maintained.
• Watch for any increase in liabilities, particularly short-term creditors, which could strain cash flow.
• Track any changes in business scale or employee numbers that could impact operational costs.
• Confirm continued timely filing and compliance to avoid regulatory risks.
• Review any future financial statements for evidence of revenue generation and profit retention beyond capital injections.