PODDA AND WREN COFFEE ROASTERS LTD

Executive Summary

PODDA AND WREN COFFEE ROASTERS LTD is a micro private company showing early growth with increasing net assets and investment in fixed assets. While the company has a negative working capital position indicating tight liquidity, its committed management and steady financial progression warrant credit approval with ongoing monitoring of cash flow and short-term liabilities. Close attention to liquidity metrics and operational performance is recommended to mitigate credit risk.

PODDA AND WREN COFFEE ROASTERS LTD - Analysis Report

Company Number: 14402564

Analysis Date: 2025-07-20 14:08 UTC

1. Credit Opinion: APPROVE with caution. PODDA AND WREN COFFEE ROASTERS LTD is a micro-entity in the early stages of development, showing modest net asset growth and stable fixed assets. Despite current liabilities exceeding current assets, the company has improved net assets year-on-year and maintains a small but positive equity base. The presence of three experienced directors with significant control suggests committed management. However, working capital is negative, indicating potential liquidity pressures that require monitoring.

2. Financial Strength: The balance sheet shows fixed assets increased from £32,623 to £35,990, indicating investment in plant or equipment supporting operations. Net assets have grown from £9,698 in 2022 to £12,751 in 2024, reflecting retained earnings or additional capital injections. Current liabilities exceed current assets by £20,030, consistent with a negative working capital position typical of early-stage businesses managing payables and receivables cycles. Overall, the company’s solvency appears adequate but liquidity is tight.

3. Cash Flow Assessment: Current assets consist mainly of cash and debtors (£19,913 in 2024 up from £11,309 in 2023), but these are insufficient to cover short-term obligations (£39,943 in 2024). The negative net current assets indicate reliance on short-term financing or trade credit. The company’s cash position was previously £4,518 (2023) but specific cash data for 2024 is not separately disclosed. Operating cash flow and working capital management will be critical to ensure ongoing liquidity and the ability to meet creditor payments promptly.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to track improvements or deterioration in working capital.
• Cash flow trends: Operating cash flow and cash reserves to assess ongoing ability to service debt and operating expenses.
• Debt levels: Watch for any increase in short-term creditors or new borrowings that could strain liquidity.
• Profitability and margins: As financial data matures, assess whether the company can generate sustainable earnings.
• Director stability and governance: Monitor any changes in management or control that could impact strategic direction.