Company Number: 13587941

Analysis Date: 2025-07-20 17:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Procurapack Ltd is a micro-entity operating in packaging activities with a very recent incorporation date (2021). The company has demonstrated positive net asset growth and a modest working capital surplus, indicating improving financial stability. However, being a micro business with minimal fixed assets and a single employee, the scale and operational breadth are limited, which constrains its resilience. The absence of detailed profit and loss data and reliance on micro-entity accounting standards limit transparency. Credit approval is recommended with conditions—such as monitoring ongoing trading performance and requiring updated financials or cash flow forecasts for larger credit facilities.

2. Financial Strength:

• Net assets have increased from £2 in 2021 to £2,263 in 2024, reflecting incremental retained earnings or capital injection.
• Current assets have grown from £14,680 to £39,153, while current liabilities rose from £15,018 to £37,637, maintaining a positive net current asset position (£1,516 in 2024 vs. £-338 in 2021).
• Fixed assets are negligible (£908 in 2024), indicating minimal investment in long-term resources.
• Shareholders’ funds correspond to net assets, confirming no off-balance sheet liabilities.
  This balance sheet profile suggests a stable but very small capital base, typical of micro businesses, with improving liquidity but limited asset backing.

3. Cash Flow Assessment:

• Positive net current assets indicate working capital sufficiency to cover short-term obligations.
• The incremental increase in current assets suggests cash or debtors are growing, which supports liquidity.
• However, current liabilities have also increased proportionally, cautioning that payables or short-term debt levels require close management.
• The company employs only one person, which limits fixed overheads, potentially easing cash flow pressure.
• Lack of detailed cash flow statements or profit and loss accounts restricts definitive liquidity analysis; assumptions rely on balance sheet trends.

4. Monitoring Points:

• Track net current assets and current liability levels to ensure working capital remains positive and sufficient.
• Monitor trade creditor days and debtor collections to prevent cash flow bottlenecks.
• Obtain periodic management accounts or cash flow forecasts to detect early signs of financial stress.
• Observe any changes in ownership or director conduct that could affect governance.
• Watch for timely filing of statutory accounts and confirmation statements to avoid regulatory risks.