Company Number: 13555743

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Nuzzl Ltd shows a modest but improving financial position with positive net assets and net current assets as of August 2024. The company’s ability to generate cash is limited but stable, with cash holdings exceeding current liabilities this year, improving from a working capital deficit last year. However, the small asset base and limited turnover (not disclosed but implied by small account category and employee numbers) suggest a fragile financial position. Credit approval should be conditional on continued monitoring of liquidity and receivables management, with caution around exposure limits and loan tenure.

2. Financial Strength:
   The balance sheet shows a net asset value of £2,674 as of 31 August 2024, nearly doubling from £1,030 the prior year, primarily due to improved working capital (net current assets positive £680 vs negative £845 previously). Fixed assets are minimal (£1,994), mainly plant and machinery with straight-line depreciation applied. Shareholders’ funds align closely with net assets, indicating no hidden liabilities. The company is classified as a micro entity with a very small capital base (£2 share capital) and modest retained earnings (£2,672 P&L reserve). Overall, the financial strength is weak but improving.

3. Cash Flow Assessment:
   Cash at bank stands at £6,549, comfortably covering current liabilities of £5,869, an improvement from last year’s £7,105 cash against £7,950 liabilities. This switch to positive net current assets signals better short-term liquidity management. However, the company has no reported debtors, implying either minimal credit sales or effective cash collection. The reduction in employee numbers from 2 to 1 may indicate cost control or downsizing. The limited cash buffer means the company may struggle to absorb unexpected expenses or delays in cash inflows.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to ensure net current assets remain positive
• Cash flow trends on a quarterly basis to detect any deterioration in cash balances
• Creditors aging and tax liabilities, as current taxation and social security are the largest short-term liabilities (£4,182)
• Turnover growth and profitability metrics once available to assess operational viability
• Changes in director or shareholder structure and any related party transactions
• Compliance with future filing deadlines and any overdue accounts or returns