PHOENIX TRAINED DOGS LIMITED

Executive Summary

Phoenix Trained Dogs Limited shows early signs of growth with improved net assets and increased staffing, but liquidity remains tight with current liabilities close to current assets. The company is capable of meeting short-term obligations but requires careful cash flow management. Conditional credit approval is advised with close monitoring of financial performance and working capital metrics.

PHOENIX TRAINED DOGS LIMITED - Analysis Report

Company Number: 13383237

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Phoenix Trained Dogs Limited is a micro-entity with limited financial history, incorporated in 2021. The most recent accounts show modest net assets of £8,032 and positive working capital, which supports short-term debt servicing. However, the company has a relatively high level of current liabilities (£90,457) compared to current assets (£98,489), indicating tight liquidity. The business has grown from negligible assets in 2022 to a stronger asset base in 2023 and employs 7 staff, indicating operational expansion. Given the early stage of the business and limited financial depth, approval is recommended on a conditional basis, with ongoing monitoring of cash flow and profitability.

2. Financial Strength:
   The balance sheet shows net assets of £8,032 as of May 2023, up from £100 the previous year, reflecting some growth. Current assets consist mainly of cash and receivables totaling £98,489, offset by current liabilities of £90,457. There are no long-term liabilities disclosed. The shareholder funds equal net assets, consistent with a micro-entity reporting standard and absence of external debt. The increase in net assets demonstrates some capital retention but remains low, limiting the cushion against financial stress.

3. Cash Flow Assessment:
   Working capital is positive but slim at £8,032. The company’s cash position improved substantially from £100 to a significant part of current assets but must be closely watched due to the high level of short-term creditors. There is no detailed cash flow statement available, but the ability to meet current obligations hinges on timely collection of receivables and controlled disbursement of payables. The increase in employee count to 7 staff adds fixed cost pressure that must be supported by consistent revenue generation.

4. Monitoring Points:

• Liquidity metrics: current ratio and quick ratio to ensure working capital remains positive.
• Timeliness of accounts filing and confirmation statements to maintain compliance and transparency.
• Profitability trends and cash flow statements when available to assess operational sustainability.
• Director appointments and changes, noting the recent appointment in April 2025, to evaluate management stability.
• Potential build-up of trade creditors or other liabilities that could strain cash flow.