Company Number: 13109626

Analysis Date: 2025-07-20 14:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Royyal Care Ltd is a micro-entity engaged in temporary employment agency activities with a short trading history since incorporation in 2021. The latest accounts show positive net assets and improving working capital, indicating prudent financial management. However, limited scale, relatively modest asset base (£859 fixed assets), and absence of profit and loss details warrant caution. Credit approval is recommended subject to monitoring of cash flows and ongoing trading performance, especially given director changes and the nature of the industry which can be sensitive to economic cycles.

2. Financial Strength:
   The balance sheet as of 31 January 2024 shows total net assets of £7,609, up from £5,859 the prior year, reflecting capital growth and retained earnings. Fixed assets are minimal (£859) consistent with a service business. The company maintains a strong net current asset position of £7,750, indicating good liquidity. Share capital is nominal (£2), with the majority of equity comprised of reserves or retained profits. The increase in net current assets suggests an improving financial position, but the small size limits the buffer against shocks.

3. Cash Flow Assessment:
   Current assets of £9,807 exceed current liabilities of £2,057 by a healthy margin, supporting the company’s short-term obligations. The net current assets of £7,750 imply sufficient working capital to fund operations and meet creditor payments timely. Accruals and deferred income increased to £1,000, which should be reviewed for timing and impact on cash flow. Absence of detailed profit and loss information and cash flow statements limits full assessment, so cash flow should be closely monitored going forward.

4. Monitoring Points:

• Track trading performance and margin sustainability given the temporary employment sector's sensitivity to economic conditions.
• Watch working capital trends, particularly debtor and creditor days, to ensure liquidity is maintained.
• Monitor director stability and governance, noting the recent resignation of one director in February 2024.
• Review future filings for profit and loss data and cash flow statements to gain deeper insight into operational cash generation.
• Keep an eye on any increases in short-term liabilities or accruals that could strain liquidity.