Company Number: 13709376

Analysis Date: 2025-07-20 17:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SHUBA EVENTS LTD demonstrates modest but improving financial strength with growing net assets over recent years, indicating some business progress. However, persistent net current liabilities and negative working capital suggest liquidity pressures that may constrain the company’s ability to meet short-term obligations without external support. The company operates in management consultancy, a sector generally resilient but competitive, and the presence of multiple experienced directors, including a financial consultant, supports competent governance. Credit approval should be conditional on monitoring cash flow closely and possibly securing additional short-term liquidity or guarantees.

2. Financial Strength
   The company's net assets increased from a negative £2,777 in 2021 to £17,916 by October 2024, reflecting successful capital injection or retained earnings accumulation. Fixed assets grew from zero to £21,207, indicating some investment in long-term resources. However, net current liabilities remain negative (£1,291 in 2024), showing current liabilities exceed current assets, which is a concern for liquidity. Total assets less current liabilities improved substantially from £-777 in 2021 to £19,916 in 2024, a positive trend. Overall, the balance sheet shows early-stage growth but with working capital constraints.

3. Cash Flow Assessment
   Current assets (£32,981) are insufficient to cover current liabilities (£34,272), resulting in negative net working capital. This points to potential short-term liquidity risk, requiring careful management of receivables and payables. The company has a small employee base (average 3), which limits fixed overheads but also suggests limited operational scale. No audit was required, and profit and loss data is not publicly available, restricting cash flow visibility. The company should maintain tight control over cash inflows and outflows and consider cash flow forecasting to avoid payment delays.

4. Monitoring Points

• Working capital trends: Watch if net current liabilities improve or worsen in the next filings.
• Cash flow statements (if available next year) for operational cash generation.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Changes in director appointments or PSC structure that may affect governance.
• Impact of any economic shifts on management consultancy demand.