SHATIBI LTD

Executive Summary

SHATIBI LTD demonstrates improving financial position with positive net assets and increased liquidity, supporting short-term debt servicing capacity. Given its young age and limited financial history, credit approval should be conditional with ongoing monitoring of cash flows, profitability, and sector risks. The company’s current balance sheet strength and management control indicate moderate resilience for its size and industry.

SHATIBI LTD - Analysis Report

Company Number: 13520592

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SHATIBI LTD shows improving financial health with positive net current assets and net assets as of July 2024, indicating an ability to meet short-term liabilities. However, the company is very young (incorporated 2021), with limited historical financial data, and operates in the education support sector, which can be sensitive to funding changes. Continued monitoring of cash flows and profitability is advised before extending significant credit facilities.

2. Financial Strength:
   The balance sheet reflects a small but improving net asset position: net assets rose from a negative £5,194 in 2023 to positive £10,183 in 2024. Current assets increased markedly from £2,006 to £21,397 largely improving liquidity. Current liabilities remain modest and stable around £7,200-£11,214. The company has no long-term liabilities reported and shareholders’ funds correspond directly with net assets, consistent with a micro-entity status.

3. Cash Flow Assessment:
   The company’s net current assets improved to £10,183, indicating adequate short-term liquidity. The increase in current assets is a positive sign, but absolute cash balances and working capital turnover rates are not disclosed. The average employee count increased from 7 to 9, which may raise operating expenses. Monitoring cash flow generation relative to payroll and operating costs is essential to confirm ongoing debt servicing capability.

4. Monitoring Points:

• Track cash flow statements and working capital cycles to ensure liquidity remains robust.
• Observe profitability trends and whether retained earnings grow, as current positive net assets are largely from increased current assets rather than accumulated profits.
• Watch sector developments affecting education support services funding or demand.
• Monitor director conduct and company compliance filings to ensure operational stability.