Company Number: 13803502

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

SOUAREE LIMITED is a micro private limited company engaged in general cleaning services, incorporated in late 2021. The company is active with up-to-date filings and no overdue accounts or returns. However, its financials show a very modest net asset base (£893 at year-end 2023) and a significant decline in net current assets from £3,208 in 2022 to £893 in 2023. Current liabilities have more than doubled from £12,465 to £27,226, mostly trade creditors and tax liabilities. This indicates tightening liquidity and working capital constraints. The absence of fixed assets and reliance on a single director/shareholder controlling 100% equity adds to concentration risk. Given these factors, credit facilities may be extended with caution and limits on exposure until further financial strengthening is demonstrated.

2. Financial Strength:

• The balance sheet is small and fragile, with net assets of only £893.
• No fixed assets; the company operates with current assets only (cash and debtors).
• Debtors increased substantially in 2023 (£13,718 vs £2,610 in 2022), possibly due to higher sales or slower collections.
• Current liabilities rose sharply to £27,226, driven by trade creditors and tax/social security.
• Net current assets remain positive but have deteriorated, indicating working capital is tight.
• Shareholder funds are minimal, reflecting limited retained earnings.

3. Cash Flow Assessment:

• Cash on hand slightly increased (£14,401 from £13,063), indicating some liquidity maintained.
• Sharp increase in creditors suggests the company is relying on credit from suppliers or deferring payments to manage cash.
• The increase in trade debtors may pressure cash inflows if collection terms are extended.
• With only one employee and a small operation, fixed overheads are likely low, but working capital management is critical.
• The company must demonstrate consistent cash generation and improve net current assets before considering larger credit lines.

4. Monitoring Points:

• Watch trends in current liabilities and ensure they do not outpace current assets further.
• Monitor debtor aging and collection efficiency to avoid cash flow strain.
• Confirm tax liabilities are settled timely to avoid penalties.
• Observe any changes in ownership or director appointments that may impact control or strategy.
• Review turnover and profitability trends as they become available for signs of growth or decline.
• Ensure timely filing of accounts and confirmation statements continues.