SOUTHBOROUGH PET GROOMERS LTD

Executive Summary

Southborough Pet Groomers Ltd is a financially sound, small private company with improving net assets and strong liquidity. It demonstrates effective management of working capital and no overdue compliance issues, supporting a positive credit recommendation. Continued monitoring of cash flow and taxation liabilities is advised to maintain creditworthiness.

SOUTHBOROUGH PET GROOMERS LTD - Analysis Report

Company Number: 14358767

Analysis Date: 2025-07-29 17:10 UTC

1. Credit Opinion: APPROVE
   Southborough Pet Groomers Ltd demonstrates a stable financial position with improving net assets and positive working capital for the past two years since incorporation in 2022. The company has no overdue filings, is actively trading, and exhibits prudent financial management with modest fixed asset investment and strong cash reserves. The directors have maintained sound financial stewardship, and the company’s liquidity supports its ability to meet short-term obligations. Given these factors, the company is assessed as a low credit risk suitable for credit facilities with standard monitoring.

2. Financial Strength:
   The company’s net assets increased from £3,357 in 2023 to £9,413 in 2024, reflecting retained earnings accumulation. Shareholders’ funds closely mirror net assets, indicating no significant debt funding. The balance sheet shows minimal fixed assets (£1,594), appropriate for the service nature of the business. Current liabilities decreased slightly, improving net current assets from £3,357 to £7,819, which is a positive signal of balance sheet strength. The company meets the “Small” account category criteria, filing full accounts with no signs of financial distress.

3. Cash Flow Assessment:
   Cash at bank increased from £12,902 to £15,741 year-on-year, evidencing positive cash generation or equity injection. Current liabilities are well covered by current assets, with a current ratio of approximately 2:1 (15,741/7,922), indicating good short-term liquidity. The company’s working capital position is healthy, and with no long-term debt reported, liquidity risk is low. The business appears capable of servicing debt and operational expenses comfortably.

4. Monitoring Points:

• Maintain focus on cash flow generation and working capital management as the company scales.
• Monitor changes in taxation and social security creditor balances, which increased significantly, to ensure timely payments.
• Watch for any material changes in turnover or profitability once published, as detailed P&L data was not provided.
• Keep track of director changes or PSC adjustments as these might impact governance and control.