SAA CLOTHING LIMITED

Executive Summary

SAA Clothing Limited has demonstrated initial financial stability with positive net assets and sufficient liquidity in its first year of trading. The company’s creditworthiness is supported by a solid working capital position, but as a newly formed entity with limited operational history, credit approval should be conditional on continued performance monitoring. Close attention to cash flow management and statutory compliance will be essential for ongoing credit risk assessment.

SAA CLOTHING LIMITED - Analysis Report

Company Number: 15270938

Analysis Date: 2025-07-20 13:03 UTC

1. Credit Opinion: APPROVE with conditions.
   SAA Clothing Limited is a newly incorporated private limited company specializing in online retail sales via internet (SIC 47910). The company shows a modest but positive net asset position and working capital surplus from its first accounting period, indicating initial financial stability. However, as a start-up with limited operational history and a single director/shareholder, credit approval should be conditional on ongoing monitoring of trading performance and timely filing of future accounts and returns.

2. Financial Strength:
   The company reported total net assets of £32,191 as of 30 November 2024, comprised mainly of current assets (£65,458) against current liabilities (£33,267). The balance sheet reflects no fixed assets, which is typical for an e-commerce retailer, but also indicates limited capital investment. Shareholders’ funds consist almost entirely of retained profits (£32,091) and nominal share capital (£100), reflecting early-stage profitability or initial funding through retained earnings. The solvency position is sound given the positive net asset value and working capital.

3. Cash Flow Assessment:
   Cash at bank and in hand stands at £44,210, representing a healthy liquidity buffer relative to current liabilities of £33,267. Debtors of £15,248 and stock of £6,000 contribute to current assets, supporting ongoing operations. The net current assets of £32,191 indicate adequate short-term liquidity and working capital management to meet near-term obligations. However, as a new business, cash flow volatility risk remains, and close attention should be paid to debtor collections and inventory turnover in future periods.

4. Monitoring Points:

• Track revenue growth and gross margin trends to validate business model scalability.
• Monitor liquidity ratios (current ratio, quick ratio) on subsequent filings to detect any tightening working capital.
• Ensure timely submission of statutory filings to maintain compliance.
• Watch for any director changes or material related-party transactions given sole control by one individual.
• Assess impact of market changes or supply chain issues on inventory and debtor balances.