Company Number: 15888193

Analysis Date: 2025-07-29 17:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   OW FUNCTIONS AND BALLS LTD is a newly incorporated micro-entity operating in event catering activities. The company has filed its first annual accounts showing a modest but positive net asset position. Given the early stage of the business, the limited financial history restricts a full credit assessment. However, the current balance sheet shows a positive net asset base and some working capital, indicating initial financial stability. Approval is conditional on monitoring future trading performance and timely filing of subsequent accounts and returns.

2. Financial Strength:

• Fixed assets stand at £5,000, reflecting some investment in long-term resources.
• Current assets of £5,570 exceed current liabilities of £5,000, yielding net current assets (working capital) of £570, which is positive but low, implying tight liquidity.
• Accruals and deferred income of £450 reduce net assets to £5,120.
• Shareholders’ funds equal net assets at £5,120, showing the company is equity-funded with no reported debt.
• The micro-entity classification means more limited financial detail, but the balance sheet reflects a small but solvent company.

3. Cash Flow Assessment:

• Current assets are only slightly above current liabilities, indicating limited short-term liquidity cushion.
• The company employs 3 people on average, suggesting some payroll obligations, but no details on cash flow statements are available.
• There is no information about operational cash flows or profitability yet, so cash flow risk exists due to the early trading stage and narrow working capital.
• The directors should maintain close control over cash management and working capital to avoid liquidity stress.

4. Monitoring Points:

• Subsequent annual accounts and cash flow statements to confirm revenue growth and profitability trajectory.
• Timely filing of accounts and confirmation statements to assess management compliance and governance.
• Monitoring of working capital ratios and any emerging debt or creditor pressures.
• Performance relative to industry benchmarks in event catering, which can be volatile and seasonal.
• Any changes in ownership or director conduct that may affect company stability.