Company Number: 14355833

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Pro Shoe Repairs Ltd is a young private limited company operating in the footwear and leather goods repair sector. The company shows positive growth in net assets and shareholder funds from £2,675 in 2023 to £19,922 in 2024, demonstrating improved financial stability. However, the increase in current liabilities to £52,121 and the presence of bank loans (both short and long term) require caution. The company has sufficient cash (£44,712) to cover immediate liabilities, but working capital is modest at £4,944. Approval is recommended with conditions requiring ongoing monitoring of liquidity and debt servicing ability.

2. Financial Strength:

• The company’s total net assets improved significantly, mainly due to increased tangible fixed assets (£29,261) reflecting investments in plant and machinery.
• Shareholders’ funds have risen markedly, indicating retained profits accumulation (£19,872 profit and loss account).
• The company carries long-term bank loans of £14,283, reduced from £18,090 the prior year, showing some debt repayment.
• Current liabilities are high at £52,121, driven by bank overdrafts (£6,552) and other creditors (£43,957), which needs scrutiny to ensure short-term obligations can be met.

3. Cash Flow Assessment:

• Cash at bank and in hand has increased substantially to £44,712, improving liquidity.
• Net current assets (working capital) are positive but relatively low at £4,944, implying limited buffer for operational volatility.
• The company’s ability to generate cash internally and manage receivables and payables efficiently will be critical to meet ongoing creditor demands.
• The absence of an audit and limited disclosure of profit and loss details limit full cash flow visibility, so a conservative stance is prudent.

4. Monitoring Points:

• Maintain close watch on current liabilities and bank overdraft usage to avoid liquidity strain.
• Monitor repayment of long-term loans and any changes in debt structure.
• Track profitability trends and actual cash flow generation in future periods.
• Review management’s ability to control creditors and stock levels to avoid working capital deterioration.
• Ensure timely filing of accounts and compliance to prevent regulatory or reputational risks.