Company Number: 13437301

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SAFE HEAVEN LTD demonstrates modest but stable net current assets and positive equity, indicating an ability to meet short-term liabilities. However, the company's micro-entity status, low fixed assets, and relatively small net assets suggest limited financial depth. The slight decline in net assets from £3,457 in 2023 to £2,193 in 2024 warrants caution. The director changes and shareholding shifts in 2024 also introduce some governance considerations. Therefore, credit approval is recommended with conditions such as monitoring financial performance and requiring up-to-date management information.

2. Financial Strength:
   The company’s balance sheet shows total net assets of £2,193 as of June 2024, down from £3,457 the prior year. Fixed assets have decreased significantly from £1,879 to £389, offset by a substantial increase in current assets from £13,033 to £32,389, which suggests a shift towards more liquid assets. Current liabilities have also increased markedly from £11,455 to £30,585, reducing net current assets slightly from £1,578 to £1,804. Overall, the company maintains positive equity and net current assets but the decline in net assets and increased liabilities indicate moderate financial fragility.

3. Cash Flow Assessment:
   The significant increase in current assets, predominantly cash or receivables, coupled with a rise in current liabilities, indicates active management of working capital but also potential short-term financial pressures. Positive net current assets of £1,804 show some liquidity cushion; however, the close proximity of current liabilities to current assets suggests working capital is tight. The company’s ability to generate sufficient operational cash flow to service liabilities and fund growth should be closely monitored.

4. Monitoring Points:

• Track net asset trends to ensure stabilization or growth.
• Monitor changes in current liabilities to avoid liquidity strain.
• Review director appointments and shareholding changes for governance risks.
• Request regular management accounts to assess cash flow and profitability.
• Watch employee numbers and operational scale for signs of business growth or contraction.