SPRING VERSE LIMITED

Executive Summary

Spring Verse Limited is a very young and small micro-entity with limited equity and significant long-term liabilities. While short-term liquidity appears adequate, credit exposure should be conditional on further clarity about long-term creditor terms and future cash flow sustainability. Close monitoring of financial progress and director management is essential before extending credit facilities.

SPRING VERSE LIMITED - Analysis Report

Company Number: 14803684

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Spring Verse Limited is a newly incorporated micro-entity with minimal financial history and limited net assets (£100). The company shows positive net current assets (£4,000) but carries a significant long-term creditor balance (£4,000), which indicates some form of long-term liability or loan. Given the short trading history (less than two years) and modest capital base, credit approval should be conditional on obtaining further information on the nature and terms of the long-term creditor and confirmation of ongoing trading viability and cash flow projections. The director’s sole control and lack of multiple management oversight increases monitoring needs.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£100) and current assets of £4,900 against current liabilities of £900, resulting in strong net current assets of £4,000. However, the presence of £4,000 creditors due after more than one year effectively reduces total net assets to a nominal £100. The small equity base and reliance on external creditors suggest limited financial buffer. The absence of employees indicates a lean operation, but also limits operating scale and diversification.

3. Cash Flow Assessment:
   Current assets exceeding current liabilities by a wide margin suggest reasonable short-term liquidity. However, the concentration of liabilities in the long-term creditor category requires scrutiny to determine repayment terms and impact on cash flows. No historical profit and loss information is available; thus, cash generation ability cannot be reliably assessed. The company should provide cash flow forecasts to assure debt servicing capacity.

4. Monitoring Points:

• Review subsequent trading results and updated accounts to confirm profitability and asset growth.
• Monitor director-related transactions and changes in creditor balances to assess financial stability.
• Verify cash flow forecasts and working capital management to ensure ongoing liquidity.
• Watch for any changes in company status or director appointments that might indicate operational or governance issues.