Company Number: 12619400

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion:
   CONDITIONAL approval. Noahs RC Ark Limited is a micro private limited company engaged in retail of specialised goods and has been operating since 2020. The latest financials show a deterioration in net assets, turning negative (£-3,934) as of May 2024, down from positive net assets of £9,823 in 2023. This suggests weakening financial strength and potential solvency concerns. However, the company remains active with no overdue filings, indicating compliance discipline. Approval would be subject to monitoring and possibly secured facilities or guarantees given the negative equity position.

2. Financial Strength:
   The balance sheet shows low fixed assets (£1,536) and a downward trend in net current assets from £15,998 in 2023 to £2,180 in 2024. Current liabilities exceed current assets by a narrow margin, but net current assets remain positive, which suggests tight short-term liquidity. The company has a small long-term creditor balance (£6,800) and accruals of £850. Negative shareholders’ funds indicate accumulated losses or withdrawals exceeding capital, reducing the company’s buffer to absorb shocks.

3. Cash Flow Assessment:
   Current assets largely comprise cash or receivables, but the decline in current assets and net current assets signals weakening working capital. Current liabilities are sizeable (£89,189), close to current assets (£75,929), implying limited liquidity cushion. With zero employees, overheads might be low, but the company’s ability to generate consistent operational cash flow is unclear due to lack of P&L data. Close attention should be paid to cash conversion cycles and timely creditor payments.

4. Monitoring Points:

• Track net asset and equity position for improvement or further deterioration.
• Monitor current ratio and net working capital monthly to ensure liquidity sufficiency.
• Review cash flow statements or bank statements if available to verify operational cash generation.
• Watch for any director changes or adverse conduct that could impact governance.
• Ensure timely filing of accounts and confirmation statements continues to avoid compliance risk.
• Consider credit limits aligned with working capital and collateral availability to mitigate risk.