NIBBLES CHEESE LIMITED

Executive Summary

Nibbles Cheese Limited is a recently formed specialist food retailer with a strong opening balance sheet and solid liquidity supported by cash reserves exceeding current liabilities. While profitability and trading performance remain unproven due to the company’s infancy, the financial position and shareholder backing provide adequate comfort for cautious credit approval. Continuous monitoring of operating cash flow and working capital metrics will be essential to ensure ongoing financial resilience.

NIBBLES CHEESE LIMITED - Analysis Report

Company Number: 15221138

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: APPROVE (Cautious) Nibbles Cheese Limited is a newly incorporated private limited company (incorporated October 2023) operating in specialised food retail (SIC 47290). Despite limited trading history (less than one full year), the financials indicate a positive net asset position with modest working capital. The company’s shareholder (Mr. Stephane Gouzien) holds full control and appears to have provided initial capital funding. While the absence of historical profit and loss data limits full assessment of profitability and cash generation trends, current liquidity and solvency metrics support cautious approval for credit facilities, especially for short-term working capital or inventory financing.

2. Financial Strength:

• Fixed assets are minimal (£2,396 net book value), reflecting light capital intensity.
• Current assets total £14,060, predominantly cash (£12,573), indicating strong liquidity.
• Current liabilities stand at £6,664, resulting in net current assets (working capital) of £7,396.
• Net assets/shareholders’ funds of £9,792 demonstrate a stable equity base relative to liabilities.
• Share capital is nominal (£100), with most equity represented by retained profits or initial funding.
• The company benefits from a clean balance sheet with no long-term debt reported. Overall, the balance sheet reflects a financially sound start-up position with sufficient capitalisation and liquidity to meet short-term obligations.

3. Cash Flow Assessment:

• Cash holdings of £12,573 are strong relative to current liabilities of £6,664, providing a current ratio of approximately 2.1x.
• Modest debtors (£131) and stock (£1,356) levels suggest manageable working capital needs.
• The company’s cash buffer supports operational liquidity and reduces risk of short-term cash flow stress.
• No audit or detailed cash flow statements are available; however, the cash position and net current assets indicate adequate liquidity to service near-term obligations.
• Close monitoring of accounts receivable turnover and inventory management will be important as the business grows.

4. Monitoring Points:

• Profitability and cash flow generation as trading history develops—future profit and loss data will be critical.
• Working capital management, especially inventory turnover and debtor collection efficiency.
• Timely filing of statutory accounts and confirmation statements (currently up to date).
• Any changes in director or ownership structure given sole control by Mr. Gouzien.
• External market conditions impacting specialist food retail demand and supply chain costs.
• Potential capital requirements if expansion plans arise.