Company Number: 14357517

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: APPROVE
   That Ginger Bloke Ltd demonstrates a solid balance sheet with positive net assets (£17,732) and net current assets (£15,987) as of its first full financial year ending 31 March 2024. The company has a strong cash position (£29,929) relative to current liabilities (£20,648), indicating sufficient liquidity to meet short-term obligations. The director, Mr Christopher Rankin, holds 100% ownership and appears engaged, with a director loan account indicating some ongoing financial interaction but no related party concerns noted. Given the company’s young age (incorporated in September 2022), the absence of audit and limited operating history makes the credit risk moderate but acceptable with standard monitoring.

2. Financial Strength:
   The company’s balance sheet shows tangible fixed assets of £1,802 and current assets totaling £36,635 (cash and debtors), offset by current liabilities of £20,648. The net assets of £17,732 reflect initial capital of £100 plus accumulated profits of £17,632, demonstrating early profitability or retained earnings. The company is classified as a small entity and benefits from exemption from audit requirements. The gearing is low, with no long-term liabilities reported, and equity fully covers the liabilities, implying financial stability at this stage.

3. Cash Flow Assessment:
   Cash at bank (£29,929) covers current liabilities comfortably, providing a current ratio of approximately 1.77 (36,635/20,648), which is healthy for a small business. Debtors of £6,607 represent receivables likely convertible to cash in the short term. The presence of a director loan account (£10,139 owed by the company to the director) reflects internal financing and potential cash flow support from the principal shareholder if needed. Working capital is positive, supporting operational liquidity and short-term debt servicing.

4. Monitoring Points:

• Monitor subsequent trading performance and cash flow reports to ensure continued profitability and liquidity, given the company’s infancy.
• Keep track of director loan account balances and any changes in related party transactions that might affect credit risk.
• Review timely submission of future accounts and confirmation statements to avoid compliance issues.
• Watch for changes in current liabilities, especially tax and social security obligations, to prevent liquidity strain.
• Assess industry risks related to performing arts, which can be sensitive to economic cycles and discretionary spending.