Company Number: 13130098

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Partners In Logistics UK Ltd demonstrates improving financial health with a positive turnaround from net liabilities in prior years to net assets of £124,990 as of 29 February 2024. The company shows adequate working capital and liquidity, supported by increased current assets and cash balances. However, the presence of a significant intercompany loan (£120,000) classified as a long-term creditor and historical losses indicate some risk. Approval is recommended subject to ongoing monitoring of profitability and debt repayment capability, particularly the intercompany loan and trade creditor levels.

2. Financial Strength:

• Net assets improved substantially from a negative £27,065 in 2023 to positive £124,990 in 2024, reflecting accumulation of retained earnings and capital injection (noted share premium of £99,900).
• Fixed assets increased modestly to £23,416, indicating reinvestment in tangible assets.
• Current assets rose sharply to £485,059 driven by a significant increase in debtors (£373,902) and cash (£111,157), providing liquidity.
• Current liabilities increased to £258,085 but remain comfortably covered by current assets, yielding a strong net current asset position of £226,974.
• Long-term liabilities remain stable at £120,000, all related to an intercompany loan, which is a contingent risk depending on the parent entity’s health.

3. Cash Flow Assessment:

• Cash on hand increased from £83,471 to £111,157, strengthening liquidity.
• The sharp increase in trade debtors (from £89,613 to £365,368) suggests extended credit terms or slower collections, which could stress cash flow if not managed carefully.
• Trade creditors increased from £61,235 to £181,740, indicating higher supplier credit or delayed payments. This requires ongoing scrutiny to avoid supplier relationship risks or liquidity strain.
• Positive net current assets and increased cash balances mitigate immediate liquidity concerns, but cash flow from operations should be monitored to ensure timely debtor collections and creditor payments.

4. Monitoring Points:

• Trade debtor days and credit control effectiveness, given the large increase in debtors.
• Profitability trends in future filings to confirm sustained earnings recovery.
• Intercompany loan repayment terms and likelihood of recovery or refinancing.
• Management of trade creditors and working capital cycle to prevent liquidity bottlenecks.
• Directors’ continued oversight and governance to maintain financial discipline and growth momentum.