SASSYPANTSTHELABEL LIMITED

Executive Summary

SassyPantsTheLabel Limited shows a promising credit profile with solid balance sheet growth, strong liquidity, and effective working capital management. The company’s ability to generate retained earnings and maintain cash reserves supports its capacity to meet obligations. Continued monitoring of receivables and profitability trends is advised to ensure sustained financial health.

SASSYPANTSTHELABEL LIMITED - Analysis Report

Company Number: 14033370

Analysis Date: 2025-07-29 15:24 UTC

1. Credit Opinion: APPROVE. SassyPantsTheLabel Limited is a small private limited company incorporated in 2022, actively trading in clothing manufacture and retail. The company demonstrates solid financial growth, with net assets increasing from £25,035 in 2023 to £42,667 in 2024, reflecting improved profitability and capital retention. The business shows strong liquidity and working capital management, suggesting a good ability to service debt and meet short-term obligations. The directors appear stable and engaged, with no adverse conduct records, indicating sound management stewardship.

2. Financial Strength: The company’s balance sheet is healthy and improving. Fixed assets remain minimal (£1,241) as expected for a retail/manufacturing SME, while current assets have increased significantly to £65,622, mainly driven by cash (£36,215) and debtors (£24,407). Current liabilities stand at £24,196, yielding a robust net current asset (working capital) position of £41,426. The net assets of £42,667 are entirely equity financed, with no indication of debt, which reduces financial risk and enhances solvency. The increase in shareholders’ funds from £25,035 to £42,667 year-on-year reflects retained earnings and ongoing profitability.

3. Cash Flow Assessment: The company holds a strong cash position relative to liabilities, with cash on hand exceeding current liabilities by approximately 50%. Debtor balances have nearly doubled, indicating increased sales on credit but remain manageable given the cash reserves. The sizeable working capital buffer suggests the company can comfortably cover short-term obligations and absorb potential fluctuations in cash flow, supporting operational resilience. Inventory is modest (£5,000) and appropriately valued, limiting risk from stock obsolescence or liquidity constraints.

4. Monitoring Points:

• Monitor debtor collection periods and credit control practices to manage cash flow risk as receivables grow.
• Assess turnover and profit margins in future accounts to confirm continued growth and profitability.
• Watch for any significant increases in current liabilities or introduction of financial debt that could impact liquidity.
• Review director appointments and related party transactions for governance and control integrity.
• Given the company’s young age, monitor market position and competitive environment impact on financial performance.