SWAN BOOKS LIMITED

Executive Summary

Swan Books Limited is a micro-entity showing healthy balance sheet growth and strong net current assets, indicative of good short-term liquidity. The company’s financial health supports an approval for credit, with standard monitoring on accruals and compliance. Overall, it presents a low-risk credit profile at this early stage.

SWAN BOOKS LIMITED - Analysis Report

Company Number: 13125473

Analysis Date: 2025-07-20 13:19 UTC

1. Credit Opinion: APPROVE
   Swan Books Limited demonstrates a stable financial position for a micro-entity. The company has grown net assets significantly from £1 in 2022 to £19,055 in 2024, indicating positive financial development. There are no overdue filings, and the director appears to maintain compliance. Although the business currently employs no staff and holds modest fixed assets, its net current assets and shareholders’ funds suggest it can meet short-term liabilities comfortably. Given its bookkeeping and accounting services focus, the risk profile is moderate. Credit facilities may be approved with standard monitoring given the company’s size and early stage.

2. Financial Strength:
   The company’s balance sheet as of January 31, 2024, shows total fixed assets of £2,585 and current assets of £35,046 against current liabilities of £3,581, yielding net current assets of £31,465. After accruals and deferred income of £14,995, net assets stand at £19,055, which represents shareholders’ funds. The increase from a net asset base of £1 two years prior reflects capital growth or retained earnings. The balance sheet is liquid, with a strong working capital position and no long-term debt indicated. As a micro-entity, the scale is small but financially sound.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the substantial net current assets relative to current liabilities imply good short-term liquidity and working capital management. The company’s current assets exceed liabilities by a factor of nearly ten, suggesting it can cover its operational expenses and short-term debts. The absence of employees reduces fixed overheads, potentially easing cash flow strain. However, accruals and deferred income of nearly £15k should be monitored as these represent future obligations or revenues received in advance.

4. Monitoring Points:

• Track continued compliance with filing deadlines to avoid penalties or credit risk signals.
• Monitor accruals and deferred income balances to ensure they do not indicate revenue recognition issues or prepaid expenses that may impact cash flow.
• Observe net asset trends in subsequent accounts to confirm sustained profitability or capitalization.
• Assess any changes in director or ownership that could affect governance or control risks.
• Given the company’s micro status and zero employees, watch for operational scaling that might affect liquidity or debt needs.