Company Number: 15156918

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion: APPROVE
   P.G. Oakden & Sons Limited is a newly incorporated private limited company with a strong opening balance sheet demonstrating significant net assets primarily invested in fixed asset investments. The company shows a healthy liquidity position with ample cash reserves relative to current liabilities, indicating a good capacity to meet short-term obligations. There are no signs of financial distress or overdue filings, and the directors have confirmed going concern status. Although the company is in its infancy and lacks a profit and loss history, the substantial equity base and low leverage support an approval for credit facilities.

2. Financial Strength:
   As of 31 December 2024, total net assets stand at £3,095,374, driven mainly by investments valued at £3,111,875. Current assets total £203,852 including £174,642 in cash and £29,210 in debtors. Current liabilities are minimal at £7,771, resulting in net working capital of approximately £196,081. The company’s equity consists largely of called-up share capital (£2,966,880) plus retained earnings (£128,494), reflecting strong capitalization. The balance sheet structure is robust with no significant debt, providing a solid financial foundation.

3. Cash Flow Assessment:
   Cash balances are strong relative to current liabilities, yielding a current ratio of over 26 (current assets of £203,852 to liabilities of £7,771), indicating excellent short-term liquidity. The high cash position suggests the company can comfortably fund operations and debt servicing in the near term. Debtor levels are low, reducing concerns about cash flow delays. The working capital position is very healthy, and the absence of significant borrowings limits financial risk from debt servicing burdens.

4. Monitoring Points:

• Business development and revenue generation: Monitor future turnover and profit trends as the company matures to ensure sustainable cash flows and debt service capacity.
• Investment performance and valuation: Track the value and impairment risk of fixed asset investments to guard against asset devaluation affecting net asset base.
• Working capital management: Watch debtor days and creditor terms to maintain strong liquidity.
• Director and ownership changes: The company is family controlled with multiple directors appointed recently; monitor governance and operational stability as it grows.