Company Number: 14540657

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Naso Pepato Limited is a newly incorporated private limited company (December 2022) operating in the wholesale of alcoholic beverages. The company shows early signs of growth with an increase in net current assets and shareholders' funds from £1,184 in 2023 to £3,798 in 2024. However, the absolute size of the balance sheet remains modest, consistent with a micro or small company profile. The directors have not provided audited accounts, which is acceptable for a company this size but limits insight into financial robustness. Given the limited operating history and relatively thin equity base, credit approval should be conditional on ongoing monitoring of trading performance and timely filing of future accounts.

2. Financial Strength Analysis:

• Share capital is nominal at £300, indicating limited initial equity injection.
• Shareholders' funds increased from £1,184 (2023) to £3,798 (2024), showing retained earnings growth (£3,498 profit and loss reserves in 2024 vs. £884 in 2023).
• Current assets rose sharply to £31,338 in 2024, driven by cash (£20,174) and trade debtors (£11,164), versus £3,655 total current assets in 2023.
• Current liabilities increased significantly to £27,540 in 2024 from £2,471 in 2023, mainly trade creditors (£17,710), corporation tax, social security, and accruals.
• Net current assets remain positive but modest at £3,798, indicating working capital is sufficient to cover short-term obligations but with limited buffer.
• No fixed assets or long-term liabilities reported, simplifying the financial structure but limiting asset backing.

3. Cash Flow and Liquidity Assessment:

• Cash at bank increased substantially from £3,655 to £20,174 in 2024, suggesting improved liquidity and cash management.
• Debtors of £11,164 indicate some credit sales; timely collection will be critical to maintain liquidity.
• Trade creditors of £17,710 may reflect good supplier credit terms, but the increase in current liabilities requires close monitoring to avoid liquidity strain.
• Positive net current assets and rising cash balances suggest the company can meet short-term liabilities as they fall due, but the narrow margin means liquidity risk exists if sales slow or debtor collections delay.

4. Monitoring Points:

• Monitor future account filings for evidence of sustained profitability and cash generation.
• Watch trade debtor ageing and creditor payment terms to detect any liquidity tightening.
• Review directors’ reports for any notes on operational risks or contingent liabilities.
• Assess impact of sector risks (wholesale alcoholic beverages) including regulatory changes or supply chain disruptions.
• Confirm no overdue filings or governance issues emerge.