Company Number: 13130493

Analysis Date: 2025-07-20 12:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Olive & Bud Ltd is an active private limited company operating in the retail sale of clothing sector since 2021. The company demonstrates modest net current assets and shareholders' funds around £1,100, indicating a small but positive equity base. However, cash reserves have declined substantially from £4,071 in 2021 to £1,651 in 2024, suggesting potential liquidity constraints. The absence of employees and minimal tangible assets limit operational scale and resilience. Given the limited financial scale and lack of audited accounts, credit facilities can be cautiously approved with conditions such as regular cash flow monitoring and limits on exposure.

2. Financial Strength:
   The balance sheet shows current assets of £2,136 against current liabilities of £1,029 as of January 2024, resulting in net current assets (working capital) of £1,107. Shareholders' funds stand at £1,107, consistent with net assets, reflecting no long-term debt or intangible assets recorded. The company’s capital structure is highly modest with only £100 in share capital and retained earnings of approximately £1,000. The reduction in cash and creditors from prior years suggests some creditor payments or reduced payable balances but may also reflect tighter cash management. Overall, the company’s financial strength is weak but stable within its small scale.

3. Cash Flow Assessment:
   Cash has decreased markedly from £3,662 in 2023 to £1,651 in 2024, a 55% reduction within one year, which raises concerns about liquidity and the ability to fund day-to-day operations without additional financing. Current liabilities have decreased proportionally from £2,538 to £1,029, which may indicate repayment of short-term obligations or reduced supplier credit. While net current assets remain positive, the low absolute cash balance and absence of employees underscore limited operational cash generation. Close monitoring of cash flow and working capital cycles is advised to avoid liquidity shortfalls.

4. Monitoring Points:

• Cash balances and liquidity trends on a quarterly basis to detect any further cash depletion.
• Creditors and payment terms to ensure the company maintains supplier relationships and avoids overdue liabilities.
• Turnover and profitability trends (not disclosed here) to assess operational performance and future cash generation capacity.
• Director changes and control shifts, noting the recent appointment of a new director and change in significant control to Moorstone Holdings Devon Limited, which may impact strategic direction and financial policy.
• Filing compliance and audit requirements as the company remains exempt from audit, which could mask financial risks.