Company Number: 13033186

Analysis Date: 2025-07-20 13:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Penn & Bristle Limited shows a solid net asset position and positive working capital, indicating an ability to meet short-term obligations. However, the significant decline in cash and net assets from 2022 to 2023 suggests some financial strain or changes in business operations. The absence of audited accounts and limited financial disclosure (no profit and loss statement filed) restricts full assessment of profitability and cash flow generation. Given these factors, credit approval is recommended with monitoring conditions focused on updated financial performance and cash flow stability to ensure ongoing repayment capacity.

2. Financial Strength:

• Net Assets: £107,494 (down from £239,126 in 2022), a substantial decrease of over 50%.
• Shareholders Funds mirror net assets, indicating no external equity changes.
• Fixed assets are modest (£6,772), reflecting limited capital intensity.
• Current Assets (£111,027) comfortably exceed Current Liabilities (£9,018), yielding strong net current assets (£102,009).
• The sharp reduction in cash from £210,968 to £50,761 raises concerns regarding liquidity management or increased operational cash outflows.
• Debtors increased from £23,029 to £45,266, suggesting either growth in sales or slower collections, which should be monitored.

3. Cash Flow Assessment:

• Cash on hand is adequate to cover current liabilities (cash £50,761 vs liabilities £9,018), supporting short-term liquidity, but the significant year-on-year decrease is a warning sign.
• Debtor levels have doubled, potentially impacting cash conversion cycles if collections are delayed.
• Working capital is positive and healthy at over £100k, but the decline from previous year indicates potential tightening.
• Limited disclosure on profit or cash flow from operations means reliance on balance sheet metrics; monitoring incoming cash flows and debtor ageing will be important.

4. Monitoring Points:

• Updated accounts including profit and loss statements to gauge profitability and cash generation.
• Debtor aging reports and credit control efficiency to manage rising receivables risk.
• Cash flow forecasts to confirm liquidity sufficiency in coming periods.
• Any changes in director control or company strategy impacting financial stability.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.