PLANET (LONDON) LIMITED

Executive Summary

PLANET (LONDON) LIMITED is a very small, recently formed business with limited financial resources and a modest working capital surplus. While current financials show a positive liquidity position, the downward trend and minimal asset base warrant caution. Conditional credit approval is recommended with tight monitoring of liquidity and operational performance going forward.

PLANET (LONDON) LIMITED - Analysis Report

Company Number: 14518368

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PLANET (LONDON) LIMITED is a very recently established micro-entity with limited financial history and minimal asset base. The company shows modest positive net current assets and net equity, indicating a basic ability to meet short-term obligations. However, the slight decrease in current assets and net assets from 2023 to 2024 suggests a small contraction in liquidity and financial buffer. Given its micro size, short trading history, and low asset base, credit approval should be conditional on strict monitoring and possibly limited facility size to mitigate risk.

2. Financial Strength:
   The balance sheet shows net assets of £3,075 as at 31 December 2024, down from £3,808 the previous year. Current assets (£12,042) exceed current liabilities (£8,967), resulting in positive working capital of £3,075. The company holds no long-term assets or significant fixed assets, reflecting the micro classification. The capital structure is entirely equity based with no disclosed borrowings, limiting financial leverage but also indicating a fragile equity buffer.

3. Cash Flow Assessment:
   Working capital remains positive but has reduced by approximately £733 over the year, which raises concerns about cash flow trends. With two employees and no audit requirement, operational scale is minimal, likely resulting in limited cash generation capacity. No detailed cash flow statement is available, but the balance sheet suggests tight liquidity with little room for financial stress or unexpected cash outflows.

4. Monitoring Points:

• Track quarterly or interim liquidity metrics to detect any cash flow strain.
• Monitor any changes in current liabilities and their composition (e.g., trade creditors, short-term loans).
• Watch for improvements or deterioration in net current assets and net equity.
• Review director’s management actions or capital injections to support operations.
• Keep an eye on trading performance and turnover once available, given limited historical data.