THE ROLLING SCONES BAKERY LIMITED

Executive Summary

The Rolling Scones Bakery Limited is a small, micro-entity with limited financial resources and a declining net asset base. While the latest accounts show a slight improvement in working capital, the company remains financially vulnerable with minimal buffers. Credit extension should be conditional on close financial monitoring and evidence of improved cash flow management.

THE ROLLING SCONES BAKERY LIMITED - Analysis Report

Company Number: 13943290

Analysis Date: 2025-07-29 16:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL The Rolling Scones Bakery Limited shows modest financial stability but limited liquidity and a declining net asset base over the last two years. The company is a micro-entity with small fixed and current assets. The slight positive working capital in the latest year is a positive sign; however, the decline in net assets and small asset base suggest limited financial cushion. Given the company’s short trading history (since 2022) and small scale, credit should be extended cautiously with conditions such as regular monitoring of cash flows and prompt financial updates.

2. Financial Strength: The company’s net assets have decreased from £9,948 in 2022 to £7,133 in 2025, indicating erosion of equity. Fixed assets have declined steadily, which may reflect asset disposals or depreciation exceeding reinvestment. Current liabilities are roughly equal to current assets, resulting in very tight working capital (net current assets just £101 in 2025). The micro-entity status confirms limited scale. Overall, the balance sheet is lean with minimal reserves, suggesting vulnerability to unexpected financial stress.

3. Cash Flow Assessment: The company’s working capital position improved slightly in the latest year but remains marginally positive at £101. Current liabilities are high relative to current assets, which could strain liquidity if receivables or inventories are slow to convert to cash. The small scale and limited asset base imply restricted access to internal funds for operational needs or debt servicing. Without detailed cash flow statements, it is prudent to assume cash flow tightness, necessitating close monitoring.

4. Monitoring Points:

• Quarterly cash flow and liquidity updates to detect early signs of cash strain.
• Changes in net current assets and net asset value to assess financial trajectory.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Any changes in director control or operational scale.
• Evidence of improved profitability or capital injection to strengthen equity.