Company Number: 13000421

Analysis Date: 2025-07-20 14:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Napier Ann Limited is an active micro private limited company in the real estate letting sector. The company shows positive net assets and equity growth over recent years, indicating some financial recovery and management effort to strengthen the balance sheet. However, persistent negative net current assets (working capital deficits) and sizeable short-term liabilities compared to current assets pose liquidity risks. The long-term creditor balance (over £200k) also requires scrutiny regarding repayment terms. The director’s full ownership and control provides clear accountability but limited financial diversification. Credit can be approved conditionally, subject to monitoring liquidity improvements and ensuring no material adverse changes in cash flow or creditor arrangements.

2. Financial Strength:

• Fixed assets remain substantial at £331,827, stable compared to prior years, representing significant investment in property or equipment underpinning the business.
• Net assets improved to £38,623 from £13,032 the prior year, showing equity growth which supports solvency.
• Current liabilities are high at £201,271, overshadowing current assets of only £2,652, resulting in a negative working capital of £90,757. This indicates potential short-term financial stress.
• The presence of long-term creditors (£201,271) suggests reliance on external funding or loans, requiring assessment of repayment schedules and covenant compliance.

3. Cash Flow Assessment:

• Cash and current assets are very low relative to current liabilities, signaling tight liquidity and limited buffer to cover immediate obligations.
• Historical cash balances have decreased year-on-year, with only £2,652 in current assets at the end of 2024.
• Negative net current assets imply the company may face difficulties meeting short-term liabilities without refinancing or additional capital injection.
• The company should be closely monitored for cash flow generation from operations and the ability to meet creditor demands promptly.

4. Monitoring Points:

• Track working capital trends, especially improvements in current assets or reduction in current liabilities to alleviate liquidity pressure.
• Monitor repayment terms on long-term creditors and any covenant breaches or defaults.
• Review director’s financial commitments or capital injections as the sole shareholder for additional funding support.
• Watch for any overdue filings or changes in company status that could signal operational or financial distress.
• Evaluate operational cash flow performance in subsequent periods to confirm sustainable debt servicing capability.