PRODAL LTD

Executive Summary

PRODAL LTD is a micro-sized, newly established real estate trading company with a small but positive net asset base and working capital. While currently solvent, the limited scale and financial history warrant a conditional credit approval with close monitoring of financial performance and liquidity. The company’s creditworthiness will depend on its ability to demonstrate stable cash flows and growth in subsequent periods.

PRODAL LTD - Analysis Report

Company Number: 14554130

Analysis Date: 2025-07-20 12:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PRODAL LTD is a newly incorporated micro-entity with limited financial history and minimal assets. The company shows a positive net current asset position (£889) and is solvent with net assets of £890. However, the scale of operations is very small with only one employee and minimal capital. The credit risk is moderate due to the company's very limited financial footprint and lack of established cash flow history. Approval can be granted with conditions such as short-term credit limits and regular financial monitoring.

2. Financial Strength:
   The balance sheet indicates a very modest financial position. Current assets (£4,279) exceed current liabilities (£3,390), yielding positive working capital but at a low absolute level. Net assets and shareholder funds are £890, reflecting the initial capital and retained earnings. There are no fixed assets reported, which limits collateral value. The company’s micro classification aligns with its small scale and limited financial data. Overall, the financial strength is weak but solvent.

3. Cash Flow Assessment:
   There is insufficient detailed cash flow data, but the positive net current assets suggest the company can meet short-term liabilities as they fall due. The minimal liabilities and current asset base imply limited liquidity risk in the near term. The single director and employee structure suggests low overhead costs, but the company’s ability to generate sustainable cash inflows remains unproven given the early stage of trading and limited financial history.

4. Monitoring Points:

• Monitor subsequent filing of annual accounts and confirmation statements to ensure compliance and updated financial data.
• Track any growth in turnover and profitability to assess improving creditworthiness.
• Watch liquidity ratios and working capital trends as the business scales.
• Review any changes in director or ownership structure that might affect governance or risk profile.
• Observe payment behavior on any credit facilities or trade accounts extended.