SQUIRRELS UK LIMITED

1. Credit Opinion: CONDITIONAL

Recommendation: CONDITIONAL approval of credit facilities, subject to satisfactory review of the latest full financial statements, management accounts, and a group support position from Kitwave Limited.

Reasoning: - The company is active, filings are up to date, and there is no indication of insolvency proceedings, liquidation, administration, or receivership. - The company is majority owned by Kitwave Limited, which owns more than 75% of shares and voting rights. That provides a meaningful degree of implicit parent-company support, but it is not a substitute for standalone financial strength. - The last filed accounts are to 31 October 2024 and are designated as “Full”, but the financial figures are not available in the information provided. Without profit, asset, or cash flow data, a firm APPROVE cannot be justified. - There are no director disqualification records flagged in the extract, which is positive from a management conduct perspective. - There have been recent director and secretary changes in 2026. This is not an automatic red flag, but reasons for the changes should be confirmed.

2. Financial Strength

The balance sheet position cannot be quantified from the available data. The nominal share capital of £100 is only the legal minimum and gives no indication of real net worth. The true financial strength will sit in retained earnings, net assets, working capital, and any intercompany funding arrangements with the parent group.

Key observations: - The company’s last accounts to 31 October 2024 are filed as full accounts, suggesting the financial statements contain more detailed disclosure. Those figures must be reviewed before lending. - The parent, Kitwave Limited, controls the company and has the right to appoint and remove directors. This could provide balance sheet support, but only if demonstrated through a formal guarantee or evidence of retained earnings and capitalised funding. - The company operates under SIC 82990 — other business support services. That category is broad and often carries modest fixed assets, meaning balance sheet security may be limited.

From a credit perspective, financial strength is unproven at this stage.

3. Cash Flow Assessment

No cash flow or working capital figures are available. A company providing business support services typically relies on debtor collection and the working capital cycle rather than large fixed assets. Therefore, liquidity should be assessed using:

• Latest management accounts and bank statements.
• Aged debtor and creditor listings.
• The intercompany balance position with Kitwave Limited.
• Cash flow projections, particularly if the facility is to be used for working capital.
• Evidence of debt service capacity from EBITDA and operating cash flow.

The current positive indicators are administrative rather than financial: the confirmation statement was made up to 26 February 2026, and the next accounts filing is not overdue. That suggests the company is managing its legal obligations properly, which is a basic but useful sign of stewardship.

4. Monitoring Points

If a facility is advanced, the following should be monitored regularly:

• Financial statements: Obtain and review the full accounts for the year ended 31 October 2024 and the next set of accounts when filed.
• Group support: Obtain a formal group guarantee or letter of comfort from Kitwave Limited, and confirm any lending from the parent is subordinated to bank debt if appropriate.
• Management changes: Clarify the recent director and secretary resignations in 2026 and monitor ongoing key person risk.
• Working capital quality: Review debtor days, creditor days, and cash conversion each quarter.
• Leverage and liquidity covenants: Set and monitor minimum liquidity, maximum leverage, and debt service coverage ratios if financial forecasts allow.
• Adverse filings: Watch for charges, judgments, county court judgments, or late filing penalties.
• Confirmatory information: Ensure the confirmation statement due by 12 March 2027 is filed on time.