Company Number: 13117642

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

1. Credit Opinion: APPROVE with caution

Sakura Finest Limited shows a significant improvement in financial position between 2022 and 2024, moving from negative net current assets of £-12,309 to positive net current assets of £30,647. This indicates a turnaround in working capital management and liquidity. The company operates in the licensed restaurant sector, which can be sensitive to economic cycles, but the current balance sheet strength is adequate for supporting a modest credit facility. The small share capital (£1) and relatively recent incorporation (2021) suggest a young company with limited financial history, so credit exposure should be cautiously sized. The director’s stable appointment and no adverse records support reasonable management quality. Given the turnaround and positive working capital, the company can service short-term debt, but credit limits should be modest and reviewed regularly.

2. Financial Strength:

• Total net assets improved from a net liability of £-12,309 in 2022 to net assets of £30,647 in 2024.
• Current assets as of 31 Jan 2024 were £40,197, primarily cash, indicating good liquidity.
• Current liabilities decreased to £9,550, improving net current assets to £30,647.
• The company's balance sheet is small but has moved into positive territory, indicating recovery and improved financial stability.
• No provisions or long-term liabilities disclosed, limiting risk exposure.
• Equity is entirely retained earnings (£30,646), suggesting recent profitability or capital injection.

3. Cash Flow Assessment:

• Cash at bank of £40,197 is sufficient relative to short-term creditors (£9,550), providing good short-term liquidity.
• Positive net current assets indicate comfortable working capital to meet operational obligations.
• The small scale and lack of long-term debt reduce liquidity risk.
• The company’s ability to generate positive cash flow is implied by the shift from negative to positive working capital over two years and stable employee count (6 employees).
• Absence of profit and loss details limits full cash flow analysis, but the balance sheet indicates manageable cash flow for current operations.

4. Monitoring Points:

• Monitor future accounts filings, especially profit and loss statements, to confirm sustainable profitability.
• Watch working capital trends and ensure current assets remain well above current liabilities.
• Keep track of sector risks in licensed restaurants, including any regulatory or economic changes affecting cash flows.
• Review director and management conduct for any changes that could signal governance issues.
• Assess credit utilization and repayment timeliness if credit facilities are granted.