OLDBURY LOCAL LTD

Executive Summary

Oldbury Local Ltd is a small, active retail business with a sound and improving financial position characterized by positive net assets and strong liquidity. Management appears stable with no adverse governance issues, supporting an ability to meet credit obligations. Continued monitoring of working capital and sector risks is recommended to maintain credit confidence.

OLDBURY LOCAL LTD - Analysis Report

Company Number: 13476651

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: APPROVE
   Oldbury Local Ltd demonstrates a stable and improving financial position with consistent net asset growth since incorporation in 2021. The company operates in a retail sector niche and maintains positive working capital and equity, indicating capacity to meet short-term and longer-term obligations. The sole director and controlling shareholder appears actively engaged with no adverse records, supporting sound management oversight. Absence of overdue filings or liquidation status further supports creditworthiness for typical lending or trade credit facilities.

2. Financial Strength:
   The balance sheet shows net assets increasing from £25,623 in 2021 to £30,013 in 2024, reflecting modest but steady growth. Fixed assets have slightly decreased but current assets have grown significantly, indicating a shift towards more liquid assets. Current liabilities rose to £18,366 in 2024 from £2,385 in 2021, but net current assets remain healthy at £36,699 in 2024, suggesting strong short-term financial health. Shareholders' funds align closely with net assets, with no indication of external long-term debt, implying low gearing and financial prudence.

3. Cash Flow Assessment:
   Current assets of £46,334 against current liabilities of £18,366 provide a current ratio approximately 2.5x, which is comfortable and indicates sufficient liquidity to cover immediate obligations. The company’s increase in net current assets year-on-year reflects improving working capital management. Although detailed cash flow statements are not available, the positive working capital and equity growth suggest the company maintains adequate cash flows from operations to service debt and operational expenses.

4. Monitoring Points:

• Monitor growth in current liabilities relative to current assets to ensure liquidity remains strong.
• Watch for any sudden changes in net assets or working capital that might indicate operational or credit issues.
• Track any changes in director or ownership structure that could impact governance or credit risk.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.
• Observe sector conditions in retail non-specialised food stores, especially given economic fluctuations affecting consumer spending.