Company Number: 15761791

Analysis Date: 2025-07-29 15:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   STARMARKET PREMIER LTD, incorporated in June 2024, shows promising initial financial results with a healthy operating profit margin. However, as this is the first set of accounts covering just over a year of trading, the company’s track record is limited. The retail beverage sector can be competitive and sensitive to economic cycles. Approval is recommended subject to monitoring future trading performance, cash flow stability, and management’s ability to sustain profitability as the business scales.

2. Financial Strength:
   The balance sheet at 30 June 2025 reveals a strong equity base of £372,819 with net assets equal to shareholders’ funds, indicating no external debt and sound capitalization for a new SME. Fixed assets of £165,400 include motor vehicles (£100,000) and plant & machinery (£65,400), reflecting capital investment supporting operations. Net current assets stand at £207,418, showing working capital adequacy and a buffer to cover short-term liabilities of £34,157. The company is classified as small, consistent with turnover of £1.25m and 6 employees.

3. Cash Flow Assessment:
   Cash balances are healthy at £125,475, representing over half of current assets and nearly four times current liabilities, indicating strong liquidity. Debtors of £74,575 and stock of £41,525 are reasonable relative to turnover and support ongoing sales. No long-term borrowings or overdrafts are evident, reducing financial risk. The positive operating profit of £434,762 suggests good cash generation, though detailed cash flow statements are not provided. Continued focus on debtor collection and stock management will be key to maintaining this liquidity.

4. Monitoring Points:

• Track monthly and quarterly turnover and profit trends to confirm growth trajectory and margin sustainability.
• Monitor debtor aging and stock turnover ratios to ensure working capital efficiency.
• Review management accounts for cash flow forecasts and any external financing needs.
• Observe the impact of any changes in management or ownership control, especially given recent director turnover in mid-2025.
• Watch industry and economic conditions affecting retail beverage sales for any adverse effects.