Company Number: 14094086

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion: APPROVE with low credit risk
   RA Optical Ltd demonstrates a sound financial position for a micro-entity operating since 2022. The company shows positive net assets and net current assets consistently over its short operating history, indicating a strong working capital position relative to liabilities. The absence of overdue filings, audit exemptions consistent with company size, and a sole director who is also the principal owner suggest straightforward management with clear accountability. The company operates in retail sale by opticians—a stable sector with modest capital requirements. No significant fixed assets or long-term debts reduce financial complexity and risk. Overall, the company appears capable of meeting its short-term obligations and servicing credit facilities.

2. Financial Strength:

• Net Assets improved from £1,083 in 2022 to £13,766 in 2025, showing capital growth and retained earnings accumulation.
• Net Current Assets (working capital) remain strong at £14,755 in 2025, significantly exceeding current liabilities of £1,339.
• Little to no fixed assets reduce asset risk but suggest limited collateral value for secured lending.
• Long-term liabilities are minimal (£596 in 2025), manageable given the asset base.
• Shareholders’ funds closely track net assets, indicating no hidden liabilities.

3. Cash Flow Assessment:

• Current assets of £16,094 primarily consist likely of cash and receivables, sufficient to cover short-term liabilities comfortably.
• Working capital is robust, reflecting liquidity adequacy for ongoing operations and potential credit facility support.
• No evidence of cash flow stress or large creditor balances; creditor levels dropped from £3,524 in 2024 to £1,339 in 2025.
• Small employee base (one employee) suggests low payroll burden and controlled overheads, enhancing cash flow stability.

4. Monitoring Points:

• Monitor any increase in fixed assets or long-term borrowing that may affect liquidity or leverage.
• Keep track of receivables aging and stock levels to avoid working capital erosion.
• Observe business growth trends and any changes in sector conditions impacting retail optician revenues.
• Watch director’s credit conduct and any changes in ownership/control that could affect governance or risk profile.