SOFIANNA LIMITED

Executive Summary

SOFIANNA LIMITED exhibits improving financial health with increased net assets and positive working capital, supporting its capacity to service debt. As a micro-entity in a volatile industry with limited trading history, credit approval is recommended with conditions focused on cash flow monitoring and operational performance. Continued oversight will mitigate sector risks and ensure ongoing creditworthiness.

SOFIANNA LIMITED - Analysis Report

Company Number: 14215446

Analysis Date: 2025-07-29 15:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SOFIANNA LIMITED demonstrates improving financial strength with growing net assets and positive working capital, indicating an ability to meet short-term obligations. However, as a relatively new micro-entity in the licensed restaurant sector, the company faces inherent industry volatility and limited historical financial depth. Credit approval is recommended with conditions requiring ongoing monitoring of cash flow stability and profitability due to sector risks and limited trading history.

2. Financial Strength:
   The company’s net assets increased substantially from £18,462 in 2023 to £53,751 in 2024, reflecting retained earnings or capital injections. Fixed assets also increased moderately, signifying investment in operational capacity. Current assets rose sharply to £139,526 against current liabilities of £100,417, improving net current assets to £39,109. This positive working capital indicates the company’s balance sheet is strengthening, though total asset size remains modest typical of a micro-entity.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash and receivables, which adequately cover current liabilities, providing liquidity headroom. The working capital improvement and increased employee count (from 22 to 26) suggest expanding operations. However, there is no direct cash flow statement provided, so liquidity must be inferred from balance sheet trends. Ongoing cash flow management will be crucial given the licensed restaurant sector’s sensitivity to economic cycles and costs.

4. Monitoring Points:

• Monitor turnover and profitability trends to ensure growth is sustainable and supports debt servicing.
• Watch current ratio and net current assets for signs of liquidity stress.
• Track management’s ability to control operating costs and maintain positive cash flows.
• Review future filings for any significant changes in liabilities or asset impairments.
• Assess impact of external factors like regulatory changes or market competition in the licensed restaurant sector.