Company Number: 12419226

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: APPROVE. Orbea UK Ltd demonstrates strong financial health with increasing net current assets and shareholders’ funds over the past four years. The company maintains a solid liquidity position, evidenced by rising cash balances and a conservative level of current liabilities. It operates in a niche retail sector with backing from a stable parent group (Orbea S. Coop), which enhances its business resilience. The directors have maintained timely filings and there are no adverse records indicating management concerns.

2. Financial Strength: The balance sheet is robust for a small company, showing net current assets of £748,605 at year-end 2024, up from £602,356 in 2023, indicating growth in working capital. Shareholders’ funds increased to £748,605, reflecting accumulated retained earnings and a conservative capital structure with only £1,000 in share capital. The company’s low leverage and positive equity base provide a strong buffer against potential financial stress.

3. Cash Flow Assessment: Liquidity is strong with £437,169 in cash at bank at the end of 2024, a significant improvement from £31,988 in 2023. Debtors increased to £806,834 but remain manageable relative to current liabilities of £495,398, giving a healthy current ratio (~2.5x). The increase in taxation and social security creditors to £321,007 in 2024 warrants monitoring but may reflect timing differences rather than cash flow strain. Overall, the company has sufficient working capital to meet short-term obligations and support ongoing operations.

4. Monitoring Points:

• Monitor the rise in taxation and social security creditors to ensure these are settled promptly and do not indicate cash flow bottlenecks.
• Keep an eye on debtor collection periods as the increase in trade debtors could impact liquidity if not managed effectively.
• Watch for any changes in the operating lease commitments and their impact on cash flow.
• Follow any significant shifts in market demand for sports goods and bicycles, as the sector can be sensitive to economic cycles.