Company Number: 14350950

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Orobosa Limited has shown a marked improvement in its financial position over the last year, moving from net current liabilities and negative net assets in 2023 to positive net current assets and net assets in 2024. The company is very young, incorporated in late 2022, and currently operates in a niche regulatory sector (SIC 84120). However, the absolute values are still small, reflecting a micro-sized operation with limited scale and working capital buffer. The company’s ability to service debt is currently very modest, relying on a small cash balance (£1,114) and limited debtors (£698). Approval for credit is recommended on a conditional basis, with relatively small exposure and close monitoring, given limited financial depth and short trading history.

2. Financial Strength:

• The balance sheet at 30/09/2024 shows total current assets of £1,812 versus current liabilities of £1,319, resulting in net current assets of £493. This is a positive turnaround from the prior year’s net current liabilities of £843.
• Net assets and shareholders’ funds are positive at £493, improving from a deficit of £843 previously.
• The company holds no fixed assets, indicating limited capital investment so far.
• Share capital is nominal (£1), indicating minimal equity backing.
• Creditors are mainly taxes and social security (£819) and accruals (£500), suggesting some short-term obligations but no significant borrowings.
• Overall, the financial strength is weak but improving, with a very tight balance sheet and thin equity base.

3. Cash Flow Assessment:

• Cash on hand increased from £586 to £1,114, reflecting improved liquidity.
• Debtors of £698 provide some short-term inflows, but the overall working capital remains quite constrained.
• Current liabilities decreased slightly but remain close to current asset levels, indicating limited headroom for unexpected expenses or revenue shortfalls.
• The company’s cash flow position is fragile but shows signs of improvement; however, it would benefit from stronger cash reserves or access to short-term financing to cover operating needs.

4. Monitoring Points:

• Monitor quarterly or interim financial updates focusing on cash flow trends and working capital levels to ensure liquidity remains positive.
• Watch for any changes in creditors, especially taxes and social security liabilities, to avoid potential compliance risks.
• Assess turnover growth and debtor collection efficiency to confirm improved cash conversion.
• Review any plans for capital injection or funding to strengthen equity and support growth.
• Keep track of director activities and compliance filings since the company is newly established.