RETHINK REFRESH LTD

Executive Summary

Rethink Refresh Ltd is a small, newly established educational support company with a sound but limited financial base. Its balance sheet shows positive net assets and adequate short-term liquidity to support current operations. Approval for credit is recommended with conditions, emphasizing close monitoring of financial development and cash flow stability going forward.

RETHINK REFRESH LTD - Analysis Report

Company Number: 15077835

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: APPROVE with conditions.
   Rethink Refresh Ltd is a newly incorporated micro-entity operating in educational support services with modest asset and liability levels. The company demonstrates positive net assets and working capital, indicating an ability to meet short-term obligations. However, limited financial history and small scale warrant close monitoring of cash flows and operational progress before extending significant credit.

2. Financial Strength:
   The balance sheet shows total net assets of £3,452 with fixed assets valued at £2,728 and net current assets of £724. Current liabilities of £5,130 are covered by current assets of £5,854, reflecting a current ratio slightly above 1. This indicates a marginally comfortable liquidity position. The company has no long-term liabilities reported and shareholders’ funds equal net assets, showing no external debt and an equity-financed structure at present.

3. Cash Flow Assessment:
   With only two employees and modest working capital, the company’s operational scale is minimal. The net current asset position suggests positive short-term liquidity, but the narrow margin means cash flow could be vulnerable to unexpected expenses or revenue shortfalls. Absence of detailed profit and loss data limits deeper cash flow insight. Continuous review of cash receipts and payables is recommended to ensure ongoing liquidity.

4. Monitoring Points:

• Growth in turnover and profitability as the company matures beyond its first financial year.
• Maintenance or improvement of net current assets and liquidity ratios.
• Timeliness and completeness of future filings to ensure regulatory compliance.
• Any changes in director or PSC structure that may affect governance or control.
• External financing needs and ability to service any future debt.