Company Number: 13527497

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: APPROVE
   Natures Friend Limited demonstrates stable and improving financial fundamentals typical of a micro-entity. The company maintains positive net current assets and net assets with a consistent upward trend over the last three years, indicating growing financial buffer and low leverage risk. Directors have maintained timely filings and no adverse status or legal issues are noted. Given its current scale and financial profile, the company should be able to service modest credit facilities with low risk.

2. Financial Strength:
   The balance sheet reveals a solid liquidity position with net current assets increasing from £5,949 in 2021 to £16,735 in 2024. Current assets rose modestly to £31,478, while current liabilities increased slightly to £14,743. The company has no long-term liabilities reported, and shareholders’ funds have nearly tripled over three years, reflecting retained earnings or capital injections. The business shows prudent financial stewardship in maintaining positive equity and increasing working capital.

3. Cash Flow Assessment:
   Although detailed cash flow statements are not provided, the increase in net current assets suggests improving operational cash flow and effective working capital management. The company’s current ratio (current assets/current liabilities) is approximately 2.13 in 2024, indicating more than sufficient short-term liquidity to meet obligations. The stable employee count and micro-entity status suggest limited overhead, supporting manageable cash flow needs.

4. Monitoring Points:

• Monitor the company’s ability to sustain growth in net current assets and equity, particularly as it expands beyond micro thresholds.
• Watch for any increases in short-term liabilities that could pressure liquidity.
• Ensure continued timely filing and compliance to avoid regulatory risks.
• Track revenue trends and profitability in future accounts to confirm ongoing creditworthiness and repayment capacity.