WE LOVE PETS MAIDSTONE LTD

Executive Summary

We Love Pets Maidstone Ltd is a very small, newly established company showing a minimal but positive working capital and equity base. The company’s financial profile reveals tight liquidity and limited resilience typical of first-year start-ups. Conditional credit approval is recommended, subject to monitoring of cash flow, debtor management, and trading performance to ensure ongoing ability to meet financial obligations.

WE LOVE PETS MAIDSTONE LTD - Analysis Report

Company Number: 14416920

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   We Love Pets Maidstone Ltd is a newly incorporated small private limited company with limited trading history, reporting its first financial period ending October 2023. The company shows a marginally positive working capital position (£131) and shareholders' funds of the same amount, supported by modest current assets of £4,004 against current liabilities of £3,873. While this indicates the company can currently meet short-term obligations, the very thin equity base and low cash reserves (£529) suggest limited financial buffer. Given its infancy and small scale, credit approval should be conditional on ongoing monitoring of trading performance and cash flow management as the business matures.

2. Financial Strength
   The balance sheet reflects a micro-entity with minimal fixed assets reported and a small equity base (£131). The company’s current assets comprise primarily trade and other debtors (£3,475), which increases exposure to debtor collections risk. Cash holdings are low, and current liabilities, including corporation tax (£1,506) and other creditors (£2,367), are close to current assets, limiting financial resilience. The director’s ability to inject further capital or provide financial support may be necessary if trading conditions deteriorate. No long-term liabilities or borrowings are reported, which is positive. Overall, the financial strength is fragile but typical for a first-year start-up.

3. Cash Flow Assessment
   Cash at bank is low at £529, which, coupled with a net current asset position of just £131, places the company in a tight liquidity situation. The reliance on debtors (primarily £3,189 other debtors) to meet liabilities means that effective debtor management and timely cash collection are critical to maintaining liquidity. The accounts note a director’s current account balance of £1,743 owed by the company, indicating some director funding involvement. Dividends of £5,550 were paid during the period, which may have further stretched liquidity. With average employees numbering five, ongoing payroll and operational costs will require careful cash flow planning.

4. Monitoring Points

• Monitor subsequent trading results and profitability to assess whether the company can generate sustainable cash flow.
• Watch debtor ageing closely; slow collections could impair liquidity.
• Track cash balances and working capital trends in future filings.
• Observe any further director loans or capital injections as indicators of financial support.
• Ensure no significant increase in liabilities or credit terms that could strain liquidity.
• Review payment of dividends relative to profits and cash generation to avoid liquidity risks.