STRAVAIG LTD

Executive Summary

Stravaig Ltd exhibits strong growth in net assets and working capital, supported by its micro-entity scale and online retail business model. The company’s liquidity position is robust, enabling it to meet short-term obligations reliably. Continued monitoring of cash flow and operational metrics is advised to maintain creditworthiness as the company develops.

STRAVAIG LTD - Analysis Report

Company Number: SC735040

Analysis Date: 2025-07-20 15:28 UTC

1. Credit Opinion: APPROVE
   Stravaig Ltd demonstrates a solid financial position for a micro-entity with significant growth in net assets and net current assets over the last year. The company maintains a healthy working capital position and no overdue filings or signs of financial distress. The presence of two employees including directors suggests a lean operation with controlled overheads. Given these factors and its active status, the company appears capable of servicing short-term credit facilities and meeting its obligations.

2. Financial Strength:
   The balance sheet shows net assets increased from £29,819 in 2023 to £116,927 in 2024, driven mainly by a substantial increase in current assets (£174,891 vs. £101,622) and reduction in current liabilities (£59,070 vs. £72,374). Fixed assets remain minimal, reflecting a likely asset-light business model typical for online retail. Shareholders’ funds mirror net assets, confirming no hidden liabilities. The company’s capital base is small (£100 share capital), but the equity build-up through reserves supports financial stability.

3. Cash Flow Assessment:
   With net current assets of £115,821, the company has sufficient liquidity to cover short-term liabilities comfortably. The current ratio is approximately 3:1, indicating strong working capital adequacy. The increase in current assets suggests either improved cash balances, receivables, or inventory management, which strengthens operational cash flow. No audit exemption was claimed, consistent with its micro status, but the accounts are unaudited, so underlying cash flow quality should be monitored.

4. Monitoring Points:

• Maintain close watch on debtor collections and inventory turnover to ensure current assets remain liquid.
• Monitor any changes in current liabilities, especially trade creditors or short-term borrowings, to avoid liquidity squeeze.
• Track revenue growth and profitability trends as the company scales beyond micro thresholds.
• Keep an eye on director activities and any changes in ownership/control for governance risks.