Company Number: 13558093

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: APPROVE
   Peaberry & Tap Limited demonstrates a solid and improving financial position with consistent profitability and strong working capital. The company is active, has no overdue filings, and is managed by directors with clear control and no adverse records. Its sector exposure (wholesale of coffee, tea, cocoa, and spices) is stable and not highly cyclical, supporting resilience. No red flags such as director disqualifications or significant related-party transactions were noted.

2. Financial Strength:
   The company’s net assets have grown substantially from £69.7k in 2023 to £245.5k in 2024, reflecting retained profits after dividends. Fixed assets increased significantly to £69k, indicating ongoing investment in tangible assets. Current assets are strong at £653k, with a healthy mix of cash (£219k) and debtors (£371k). Current liabilities rose but are well covered by current assets, resulting in a positive net current asset position of £194k (up from £66k). Provisions increased to £17.3k but are modest relative to net assets.

3. Cash Flow Assessment:
   Cash balances nearly doubled, improving liquidity. The company’s working capital is robust, supporting operational needs. Debtors increased but remain proportionate to turnover and current liabilities, suggesting effective credit management. The dividend payments (£200k in 2024) indicate confidence in cash generation but should be monitored to ensure they do not impair liquidity. Directors’ advances were repaid during the year, which reduces related party risk.

4. Monitoring Points:

• Monitor debtor days and credit control to prevent build-up of aged receivables.
• Watch dividend levels relative to retained earnings and cash flow to avoid liquidity strain.
• Keep an eye on provisions to ensure they reflect actual liabilities and do not increase unexpectedly.
• Track any changes in trade creditors and tax liabilities to ensure timely payment and avoid penalties.
• Review fixed asset additions and depreciation policy to confirm appropriate capital expenditure and cost control.