Company Number: 15072007

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: APPROVE
   NOKKAM LIMITED is a recently incorporated micro-entity operating in the dental practice sector, showing a sound initial financial position with positive net assets and net current assets. The company has no history of overdue filings or adverse status and is run by two directors who also hold significant control, indicating focused management. Given the small scale and early stage, credit exposure should be moderate, but the demonstrated liquidity and equity provide confidence in servicing debt.

2. Financial Strength:
   As of 31 March 2024, NOKKAM LIMITED reported fixed assets of £934 and current assets of £31,828 against current liabilities of £15,380, resulting in net current assets of £16,448. Total net assets and shareholders’ funds stand at £15,822, indicating a modest but positive capital base. The company's balance sheet is healthy on a micro scale, with working capital more than sufficient to cover short-term liabilities.

3. Cash Flow Assessment:
   Current assets mainly consist of liquid or near-liquid items sufficient to cover liabilities due within one year by a factor of approximately 2:1. The company benefits from director loans (£9,189 owed to the company by a director), which may provide additional informal liquidity support. The average workforce is two employees, suggesting limited payroll commitments. Overall, current liquidity and working capital are adequate for ongoing operations.

4. Monitoring Points:

• Track revenue generation and profitability as the company matures beyond its first financial year to assess sustainability.
• Monitor creditor days and cash conversion cycle to ensure working capital remains positive.
• Watch for any significant changes in director loans or related party transactions that might affect liquidity.
• Review future filings for consistency in timely submission and any audit triggers if turnover or asset thresholds grow.