Company Number: 13660741

Analysis Date: 2025-07-20 18:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   T&K FOREIGN TRADE LIMITED shows a significant turnaround from a negative equity position in 2023 to positive shareholders' funds in 2024. However, the company remains very small (micro entity), with limited current assets (£9,779) and minimal liabilities (£104). The absence of employees and a very low asset base restrict its operational scale and financial resilience. Given the early stage of the company (incorporated 2021) and limited financial history, credit approval is conditional on ongoing monitoring of cash flow and equity trends, with cautious limits on exposure.

2. Financial Strength:
   The balance sheet shows a positive net asset position of £6,883 as of 30 September 2024, improved from a deficit of £11,376 in the prior comparable period. Current assets have nearly doubled from £5,403 to £9,779, while current liabilities have sharply reduced from £16,779 to just £104. Provisions for liabilities of £2,792 appear for the first time, which needs explanation but are not material relative to assets. Overall, the balance sheet is healthy but fragile due to small absolute figures.

3. Cash Flow Assessment:
   Current assets are almost entirely likely to be cash or receivables given the lack of employees and micro status, providing adequate short-term liquidity to cover current liabilities. Net current assets are strong at £9,675 (£9,779 - £104). The company is not burdened by significant short-term debt. However, the small scale of operations limits flexibility. Cash flow sustainability depends on continued revenue generation from wholesale, retail, or consultancy activities as per SIC codes.

4. Monitoring Points:

• Track shareholder funds to ensure continued equity growth and avoid return to negative net worth.
• Monitor current liabilities for any sudden increase that could pressure liquidity.
• Review provisions for liabilities to understand potential future cash outflows.
• Watch revenue trends and cash receipts given the company’s micro size and limited operating history.
• Maintain oversight of director’s activity given the single-person control and limited operational scale.