Company Number: 12841525

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: APPROVE
   DESFACT1 LTD demonstrates solid financial fundamentals for a micro-entity in the unlicensed restaurant and café sector. The company has maintained positive net assets and working capital, with no overdue filings. The presence of director advances suggests internal support, and there is no indication of financial distress or governance concerns. Given the stable financial position and active status, the company appears capable of servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows net current assets of £113,487 and net assets of £110,654 as of 31 August 2023, up from £91,528 the previous year. This growth indicates an improving equity base and ability to cover short-term liabilities comfortably. Current liabilities have decreased from £53,878 in 2022 to £35,813 in 2023, reducing financial leverage. Share capital is minimal (£2), typical for micro-entities, but shareholder funds have grown through retained earnings. The company maintains a conservative accruals position (£2,833).

3. Cash Flow Assessment:
   Current assets mainly consist of liquid or near-liquid resources (£149,300), sufficient to cover current liabilities with a healthy working capital buffer of £113,487. Director advances and credits have fluctuated but currently show a small outstanding credit balance (£335 owed to the company by directors), suggesting no significant cash flow strain. The stable employee count (2) implies controlled operating costs. Overall, liquidity appears adequate for ongoing operations and debt servicing.

4. Monitoring Points:

• Continued monitoring of working capital trends to ensure liquidity remains robust, especially as the hospitality sector can be volatile.
• Track director advances to ensure they do not indicate underlying cash flow pressures.
• Review any changes in liabilities or accruals that could affect short-term obligations.
• Watch for timely filing of future accounts and confirmation statements to avoid compliance risks.
• Assess impact of external factors such as market conditions and regulatory changes in the food service industry.