PENIEL VENTURES LIMITED

Executive Summary

Peniel Ventures Limited exhibits modest balance sheet strength with improving net assets and positive working capital, supporting a stable short-term liquidity position. However, limited turnover and small scale constrain assessment of long-term creditworthiness. Conditional credit approval is recommended, contingent on ongoing monitoring of profitability and cash flow metrics to mitigate risk.

PENIEL VENTURES LIMITED - Analysis Report

Company Number: 13243078

Analysis Date: 2025-07-20 17:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Peniel Ventures Limited is an active private limited company incorporated in 2021. It shows a modest but consistent improvement in net assets and net current assets over the last two years, indicating some financial stability and growth. The company has a low level of current liabilities relative to cash and net current assets, which supports short-term liquidity. However, the scale of operations is very small with minimal fixed assets, a single employee, and low cash balances (~£6,200). The lack of turnover or detailed profit and loss data limits assessment of earnings quality and debt servicing capacity. Approval is recommended with conditions, including monitoring of profit generation, cash flow, and working capital management before extending significant credit facilities.

2. Financial Strength:

• Net assets improved from £2,200 in 2023 to £3,308 in 2024, showing positive equity growth.
• Net current assets increased from £1,600 to £2,858, reflecting improved short-term financial health.
• Tangible fixed assets are minimal (£450 net) and declining, indicating limited capital investment or reliance on fixed assets.
• Share capital is nominal (£1), typical for small private companies.
• The company operates within the small account category, consistent with its size and financial position.
  Overall, the balance sheet shows modest but positive net worth and liquidity with low leverage.

3. Cash Flow Assessment:

• Cash at bank remains stable around £6,200 to £6,470, suggesting steady liquidity but limited cash reserves.
• Current liabilities are low (£3,365 in 2024), primarily tax and other creditors, easily covered by cash and net current assets.
• Net current assets are positive and improving, indicating sufficient working capital to meet short-term obligations.
• There is no evidence of overdrafts or borrowings; cash flow appears sufficient to cover immediate liabilities.
• However, absence of turnover and profit and loss details restricts understanding of operating cash generation and sustainability.

4. Monitoring Points:

• Track development of turnover and profitability to assess the company’s ability to service debt or repay credit.
• Monitor cash flow trends closely to ensure liquidity remains adequate, especially if credit limits increase.
• Watch current liabilities and creditor days for signs of payment delays or worsening working capital.
• Review any changes in ownership or management control; currently, one director holds full control which concentrates risk.
• Keep updated on filing deadlines and compliance to avoid penalties or regulatory issues.