Company Number: 15241565

Analysis Date: 2025-07-29 13:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Tricardia Ltd is a newly incorporated company (October 2023) operating in the employment placement agency sector (SIC 78109). Given its short trading history and relatively small scale, the credit recommendation is conditional approval. The company shows positive net current assets and equity, but limited financial history and modest share capital of £21 restrict the creditworthiness assessment. The presence of related party loans indicates reliance on shareholder funding, which should be monitored. Lending should be structured conservatively with covenants and periodic reviews.

2. Financial Strength:

• Net assets stand at £35,687 as at 31 March 2025, supported by net current assets of £55,667.
• Current assets of £187,684 comprise mainly cash (£119,792) and debtors (£67,892), against current liabilities of £132,017.
• There are non-current liabilities of £19,980, which reduces equity but overall the company maintains positive net assets.
• Shareholders funds equal net assets, indicating no external equity dilution.
• Financial leverage appears low, but the company relies on related party loans (approx. £9,990 each from two shareholders) which, while supportive, present concentration risks.

3. Cash Flow Assessment:

• The cash balance of £119,792 is a healthy proportion of current assets and exceeds current liabilities net of debtors, suggesting adequate liquidity to meet short-term obligations.
• Debtors of £67,892 represent trade receivables; the ability to collect these timely will be critical to maintain liquidity.
• Working capital is positive at £55,667, reflecting short-term financial stability.
• No profit and loss statement is available, but the profit and loss reserve of £35,666 suggests some retained earnings or accumulated profits, which is encouraging for a young company.
• Cash flow should be closely monitored, especially given the company's small capital base and early stage of trading.

4. Monitoring Points:

• Collection efficiency on debtors to ensure liquidity remains strong.
• Changes in related party loan balances and any new external borrowings.
• Profitability trends once full profit and loss accounts are filed, to confirm ability to service debt from operating cash flow.
• Directors’ conduct and changes in management team, noting recent director appointments and resignations in early 2024.
• Timely filing of accounts and confirmation statements to avoid compliance risks.
• Any material changes in business conditions or sector outlook impacting credit risk.