ORANGE SHOP LTD

Executive Summary

Orange Shop Ltd presents a solid financial position with consistent growth in net assets and strong liquidity for a micro-entity. The company’s balance sheet is well-capitalized, and working capital is robust, supporting its ability to meet short-term obligations. Credit approval is recommended with routine monitoring of its long-term liabilities and profitability metrics.

ORANGE SHOP LTD - Analysis Report

Company Number: 13147851

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: APPROVE
   Orange Shop Ltd demonstrates a positive credit profile for a micro-entity. The company shows a clear upward trend in net assets and working capital from 2021 to 2024, indicating growing financial stability. There are no indications of overdue filings or regulatory issues, and the company is active with a stable director. The presence of long-term liabilities in 2024 is notable but manageable given the strong net current assets and equity base. Credit risk is low at this stage, supporting approval of credit facilities with standard monitoring.

2. Financial Strength:

• The company’s net assets have increased from £19,557 in 2021 to £74,004 in 2024, reflecting retained earnings and reinvestment into the business.
• Shareholders’ funds have grown correspondingly, indicating solid equity backing.
• Fixed assets declined slightly but remain consistent, suggesting stable investment in tangible resources.
• The introduction of £49,522 in long-term liabilities at 2024 year-end requires attention but is offset by strong liquidity.
• Overall balance sheet health is good for a micro-entity, with a strong equity cushion and increasing asset base.

3. Cash Flow Assessment:

• Current assets increased substantially to £135,232 in 2024 from £30,425 in 2021, driven primarily by working capital components.
• Current liabilities grew but at a much slower rate, maintaining a healthy net current asset position of £114,374 in 2024 versus £19,557 in 2021.
• The company shows strong short-term liquidity and working capital, indicating it can comfortably meet near-term obligations.
• The consistent average employee count (3 employees) suggests stable operational costs.
• Cash flow appears adequate, but detailed cash flow statements would be needed for a granular assessment.

4. Monitoring Points:

• Monitor the impact and servicing of the newly introduced long-term liabilities in 2024 to ensure they do not strain liquidity.
• Watch for continued growth in net current assets and net assets to sustain creditworthiness.
• Keep an eye on profitability trends once profit and loss data become available, as these were not filed with the accounts.
• Ensure timely filing of future accounts and confirmation statements to avoid compliance risk.
• Track the company’s ability to maintain or grow revenues given the retail sector’s sensitivity to economic fluctuations.