SALEXMO COMPETITIONS LTD

Executive Summary

Salexmo Competitions Ltd exhibits strong early-stage financial health with robust liquidity and a clean balance sheet, supported by full owner control and compliance. The company appears capable of servicing credit facilities, though continued monitoring of profitability and cash flow is advised as operations mature. Overall, credit approval is recommended with routine oversight on key financial and operational metrics.

SALEXMO COMPETITIONS LTD - Analysis Report

Company Number: 14812812

Analysis Date: 2025-07-29 14:36 UTC

1. Credit Opinion: APPROVE

Salexmo Competitions Ltd, incorporated in April 2023, demonstrates a strong initial financial position with significant cash reserves (£796k) and positive net assets (£568k) despite its short trading history. The absence of overdue filings and an experienced controlling director with full ownership control supports sound governance. The company’s capital structure is clean with no long-term debt beyond manageable finance leases, indicating low financial risk. Given the nature of the business (business support services) and its adequate working capital, the company appears capable of servicing debt obligations on offered credit facilities.

2. Financial Strength:

The balance sheet shows total fixed assets of £37.5k (mainly tangible assets like fixtures, fittings, and motor vehicles) and a very strong current asset base dominated by cash. Current liabilities stand at £243k, resulting in net current assets (working capital) of £553k, which is a healthy liquidity buffer. Obligations under finance leases total £15.2k beyond one year, but these are limited and well-covered by the company's overall asset base. Shareholders’ funds of £567.5k reflect a solid equity base for a micro to small-sized company. The company is exempt from audit under small company rules and has complied with all filing deadlines.

3. Cash Flow Assessment:

Cash on hand is substantial relative to current liabilities, providing strong liquidity to meet short-term obligations without strain. The company’s positive net current assets indicate sufficient working capital to support ongoing operations and debt servicing. While detailed profit and loss data is not provided, the cash position suggests recent capital injections or profitable operations, which is consistent with a start-up in its first year. Finance lease commitments are relatively low and manageable within current cash and asset levels.

4. Monitoring Points:

• Monitor revenue growth and profitability once more detailed profit and loss accounts become available to validate sustainable cash generation.
• Track ongoing cash flow to ensure liquidity remains robust as operational activities scale.
• Review lease obligations and renewal terms to avoid unexpected financial burdens.
• Observe any changes in ownership or director conduct that could impact governance or control.
• Watch for timely filing of future accounts and confirmation statements to maintain compliance.
• Assess impact of market conditions on the business model given the competitive nature of online competitions and business support services.