Company Number: 14067306

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Nelson NW Limited is a very young micro-entity operating in the public houses and bars sector. The company shows a small positive net asset position with a modest increase in shareholders’ funds year-over-year. However, net current assets have turned negative in the latest year, indicating working capital pressure. The business is active and filing statutory accounts and returns on time, which is positive. Given the small scale, limited financial buffer, and the negative working capital, credit approval should be conditional on close monitoring of cash flows and possibly secured or short-term facilities only.

2. Financial Strength:

• Total net assets are minimal at £452, up from £391 last year, showing slight equity growth.
• Fixed assets are negligible (£1,913), suggesting little capital investment or tangible collateral.
• Current liabilities (£28,692) slightly exceed current assets (£27,931), resulting in negative net current assets (-£761), a deterioration from the prior year.
• Accruals and deferred income of £700 further reduce net assets.
  This weak balance sheet structure reflects limited financial strength and a tight liquidity position, typical for a start-up micro business.

3. Cash Flow Assessment:

• The working capital is negative, which raises concerns about the company’s ability to meet short-term obligations without additional financing or improved operational cash inflows.
• The increase in current liabilities outpaces current assets growth, indicating potential cash flow stress.
• The absence of detailed cash flow statements limits assessment, but the negative net current assets and increased accruals suggest liquidity management needs attention.
• The company’s increase in staff from 14 to 18 employees may pressure operating cash requirements further.

4. Monitoring Points:

• Monitor monthly cash flows closely to ensure timely payment of suppliers and creditors.
• Watch changes in net current assets and accruals for further deterioration.
• Track profitability (not reported here) as it will directly impact cash generation and equity build-up.
• Keep an eye on director’s loans or external borrowings that may support liquidity.
• Review compliance with filing deadlines and any changes in ownership or management.