SALES BRIDGE LIMITED

Executive Summary

Sales Bridge Limited is a newly formed micro private company showing initial financial stability with positive net assets and working capital. While its short operating history and finance lease obligations warrant cautious credit exposure, the company’s compliance and asset-backed balance sheet support a conditional credit approval. Ongoing liquidity and debt servicing should be closely monitored as the business matures.

SALES BRIDGE LIMITED - Analysis Report

Company Number: 14721289

Analysis Date: 2025-07-20 14:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sales Bridge Limited is a newly incorporated private company with a first set of unaudited accounts showing modest but positive net assets and working capital. The company has demonstrated initial financial stability with net current assets of £7,459 and shareholders' funds of £21,007, indicating capital adequacy relative to its size. However, the presence of finance lease obligations of £4,879 introduces medium-term repayment commitments that need ongoing scrutiny. Given the short operating history (just over one year), limited scale, and reliance on fixed asset financing, credit approval should be conditional upon continued monitoring of liquidity and debt servicing ability as the business develops.

2. Financial Strength:
   The balance sheet reveals a healthy net asset position of £21,007 and positive net current assets of £7,459, reflecting adequate short-term liquidity. Fixed assets of £18,427 are primarily financed through finance leases (£4,879), indicating some leverage but manageable given the asset backing. Share capital is nominal (£100), with the bulk of equity represented by retained earnings or accumulated profit reserves. The company is in the "Micro" category, with low turnover thresholds and minimal employee base, consistent with a start-up stage. There are no overdue filings or compliance issues, which supports governance confidence.

3. Cash Flow Assessment:
   Cash at bank is low at £2,130, but trade debtors of £10,901 are sufficient to cover current liabilities of £8,411, supporting working capital sufficiency. The company has no significant stock risks (£2,839 stock value) given its business support services SIC classification (82990). The key liquidity consideration is the repayment of finance lease obligations totaling £4,879 due beyond one year, which will require steady cash inflows. The business should maintain tight debtor control and monitor cash conversion cycles diligently to avoid liquidity strains.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio trends to confirm ongoing ability to meet short-term liabilities.
• Debtor ageing and collection efficiency to ensure cash flow stability.
• Lease repayment schedule adherence and impact on cash flow.
• Profitability evolution in subsequent accounts to assess operational sustainability beyond start-up phase.
• Any additional borrowing or capital injections that could affect leverage and risk profile.