Company Number: 13800612

Analysis Date: 2025-07-29 15:42 UTC

1. Credit Opinion: APPROVE
   TRI-RUGS LTD demonstrates a stable financial position with positive net current assets and net assets, indicating an ability to meet short-term liabilities. The company is small, with a consistent shareholder equity increase from £6,347 in 2021 to £7,637 in 2023, reflecting modest growth. There are no indications of insolvency or operational distress, and the single director, who is also the principal shareholder, appears to maintain control and oversight. Therefore, the company is assessed as capable of servicing debt and honoring commercial agreements at the current scale of operations.

2. Financial Strength:
   The company’s balance sheet shows net current assets of £7,637 as of 31 December 2023, up from £6,347 in 2022, indicating improved working capital. Shareholders’ funds increased by approximately 20% over two years, reflecting retained earnings and a strengthening equity base. There are no fixed assets reported, consistent with a retail business model focused on inventory turnover. Current liabilities have decreased significantly from £7,019 in 2022 to £2,306 in 2023, reducing short-term financial pressure. Overall, the financial structure is sound for a micro/small entity with low gearing risk.

3. Cash Flow Assessment:
   Cash balances decreased from £13,366 in 2022 to £6,943 in 2023; however, the company maintains sufficient liquidity to cover current liabilities (cash covers liabilities by approximately 3x). Debtors are low at £3,000, supporting cash flow reliability. The positive net current assets and reduced creditors imply manageable working capital needs. The company employs only one person, minimizing payroll expenses. While cash has declined somewhat, working capital remains positive and liquidity adequate to meet short-term obligations without stress.

4. Monitoring Points:

• Monitor cash balances and debtor collection closely to ensure liquidity remains adequate, especially since cash decreased in 2023.
• Track current liabilities to avoid any buildup that could strain working capital.
• Observe turnover and profitability trends through future accounts to confirm ongoing business viability and growth.
• Watch for any changes in ownership or director status that could impact governance and financial oversight.