Company Number: 15111792

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Saveways Wholesale Ltd is a newly incorporated wholesale food company with limited financial history. The company shows significant fixed asset investment (£927k) financed largely by long-term obligations (£1.2m), resulting in negative net assets (-£14.9k). Current assets (£392k) and net current assets (£256k) indicate some short-term liquidity, but current liabilities of £136k and long-term creditors exceed assets. The business model and asset base suggest capital-intensive operations with reliance on lease/hire purchase financing. Credit approval is conditional on monitoring cash flow performance and servicing of finance lease obligations as the company establishes trading profitability.

2. Financial Strength:
   The balance sheet as at 30 September 2024 shows substantial tangible fixed assets (£927k), but these are almost entirely financed through long-term liabilities (£1.2m), including significant non-equity preference shares (£989k). The company’s net liabilities position (-£14.9k) and negative shareholders’ funds imply initial undercapitalization. Current assets exceed current liabilities, resulting in positive net working capital (£256k), which provides a buffer for short-term obligations. However, the high gearing and negative equity reflect financial risk and dependency on creditor funding.

3. Cash Flow Assessment:
   Cash at bank is low (£1.9k), but trade debtors and accrued income total £382.6k, indicating receivables tied up in working capital. Inventory levels are minimal (£7.3k). The company’s ability to convert receivables into cash will be critical to meet ongoing lease and hire purchase repayments (£197k current + £1.0m non-current). The absence of a profit and loss account in the filings limits insight into operational cash generation. Close attention should be paid to liquidity and debtor collection efficiency to avoid cash flow stress.

4. Monitoring Points:

• Timely collection of trade debtors and management of working capital cycles.
• Serviceability of lease and hire purchase obligations as they fall due.
• Progression to profitability and generation of positive retained earnings to strengthen equity.
• Stability and continuity of controlling shareholders and directors to ensure sound governance.
• Filing of subsequent accounts to assess financial performance trends and cash flow stability.