YOUNGSTARS NURSERIES LIMITED

Executive Summary

Youngstars Nurseries Limited exhibits a healthy financial position with strong working capital and growing net assets, underpinned by effective management and compliance. The company’s liquidity and balance sheet strength support a favorable credit decision for modest lending. Ongoing monitoring should focus on managing liabilities and sustaining cash flow to preserve financial resilience.

YOUNGSTARS NURSERIES LIMITED - Analysis Report

Company Number: 13100302

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: APPROVE
   Youngstars Nurseries Limited demonstrates a solid liquidity position with increasing net current assets and net assets over the past three years. The company’s financials indicate good working capital management and no long-term debt, reducing credit risk. Directors have maintained timely filings and comply with statutory requirements, reflecting sound governance. Given the micro-entity scale with modest liabilities and positive equity growth, the company appears capable of meeting short-term credit obligations and servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows improving net assets from £49,020 in 2021 to £76,611 in 2024, indicating retained profitability or capital injection. Fixed assets are minimal (£201), consistent with a service-oriented business model. Current assets rose significantly to £176,384 in 2024, while current liabilities increased but remain manageable at £95,894. The net current assets of £80,490 provide a comfortable liquidity buffer. No long-term liabilities or provisions are recorded, suggesting low financial leverage and limited solvency risk.

3. Cash Flow Assessment:
   The company’s working capital position is strong, increasing from £64,395 in 2023 to £80,490 in 2024. Current assets being predominantly cash or receivables (typical for childcare services) implies good short-term cash availability. The rise in current liabilities may relate to operational payables or accruals but remains fully covered by current assets. No overdrafts or external borrowings are evident, indicating reliance on internal cash flows to support operations.

4. Monitoring Points:

• Monitor the trend in current liabilities to ensure they remain proportionate and do not outpace current assets, which could strain liquidity.
• Observe profitability and cash flow generation in future accounts to confirm ongoing capital accumulation.
• Verify continued compliance with filing deadlines and absence of director conduct issues.
• Watch for any changes in ownership/control or operational scale that might impact credit risk.