Company Number: OC438701

Analysis Date: 2025-07-20 11:01 UTC

1. Credit Opinion: APPROVE with conditions

St Leonards Farmyard LLP is a small, active limited liability partnership with a short trading history since incorporation in 2021. The latest financial statements to March 2024 show a positive net asset position and significant cash balances relative to creditors. However, the absence of a profit and loss account and minimal turnover data limits full assessment of profitability and operational cash flow. The company currently has no external debt and no employees, suggesting a lean operation possibly reliant on member funding. I recommend approval of credit facilities subject to periodic monitoring of future trading results, cash flow, and confirmation of sustainable profitability as the business matures.

2. Financial Strength

The balance sheet as of 31 March 2024 shows current assets of £155,641 (£154,805 cash plus £836 debtors) against current liabilities of £9,390, resulting in net current assets and net assets attributable to members of £146,251. This is a strong liquidity position with a current ratio exceeding 16:1, indicating excellent short-term financial stability. The company’s obligations to members classified as loans (undrawn profits or capital) amount to £146,251, reflecting the capital structure as primarily member-funded. No long-term liabilities or bank borrowings are reported, limiting financial leverage risk but also indicating limited external credit history.

3. Cash Flow Assessment

Cash at bank increased substantially from £65,523 in 2023 to £154,805 in 2024, implying positive net cash generation or additional member contributions during the year. Trade creditors reduced from £3,767 to £1,835, which alongside stable other creditors at £7,555, suggests effective working capital management. The presence of trade debtors (£836) indicates some ongoing revenue activity. The absence of employees and related payroll obligations reduces cash outflow pressure. Overall, liquidity is strong with ample working capital to meet current liabilities comfortably.

4. Monitoring Points

• Profitability and cash flow trends once profit and loss accounts are filed to ensure ongoing ability to service any future debt.
• Level and composition of trade debtors and creditors to assess credit risk and payment cycle efficiency.
• Any changes in member loans or capital contributions influencing funding structure and liquidity.
• Business operational developments such as employee hires or capital expenditure that may impact cash flow.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.