Company Number: 12696607

Analysis Date: 2025-07-29 19:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   8AM Global Limited demonstrates a solid balance sheet with strong liquidity but shows a noticeable decline in net assets and cash reserves over the past year. While current assets comfortably exceed current liabilities, the significant reduction in cash and net current assets from 2023 to 2024 suggests tighter operating cash flow or increased working capital usage. The company operates in financial management, a sector requiring prudent risk controls and consistent cash generation. The directors appear experienced, and no adverse director conduct or overdue filings exist. Conditional approval is recommended, subject to monitoring cash flow trends and confirming stable or improving profitability in forthcoming periods.

2. Financial Strength:
   The company’s net assets declined from £752,159 in 2023 to £485,619 in 2024, primarily driven by a decrease in cash balances from £738,143 to £340,870 and a reduction in debtors. Shareholders’ funds remain positive and materially above the small company thresholds, reflecting retained earnings of £409,646. Fixed assets are modest at £30,675, indicating limited capital intensity. Current liabilities decreased significantly to £113,594 from £291,410, improving working capital. The balance sheet is stable but shows a downward trend in equity and liquidity, which should be carefully reviewed.

3. Cash Flow Assessment:
   Cash on hand and equivalents dropped by over £397k year-on-year, which could indicate cash used in operations or investment activities. Debtors decreased, but cash conversion efficiency and payment terms should be assessed to ensure sustainable cash flow. Net current assets remain strong at £454,944, suggesting sufficient liquidity to cover short-term obligations. The operating lease commitments are minimal (£3,300), reducing fixed overhead pressures. Overall, the company has adequate liquidity presently but requires close monitoring of cash flow management to avoid strain.

4. Monitoring Points:

• Cash flow and working capital trends, particularly cash conversion cycles and debtor collection periods.
• Profitability metrics once profit and loss data is available, to verify if losses are causing equity erosion.
• Any significant changes in shareholder loans or related party transactions given ongoing dealings with IDAD Limited.
• Continuity of management and director operational involvement, as they hold significant share control and influence.
• External economic factors impacting financial management services, as sector volatility could affect revenue stability.