Company Number: 12661578

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Access Gas Limited demonstrates modest but consistent growth in net current assets and equity over the last three years, indicating gradual financial strengthening. However, the company's liquidity is tight with net current assets of only £8,102 against current liabilities of £317,616, and a relatively low cash balance of £17,409. The high level of debt owed to group undertakings (£104,407) and other creditors suggests reliance on related party funding and external payables, which could be a risk if these sources become constrained. The business operates in a specialized sector (support activities for petroleum and natural gas mining) which may be subject to commodity market volatility. The management team appears stable with no director disqualifications, and the latest audited accounts confirm a going concern basis. Approval is recommended with conditions: close monitoring of cash flow and working capital, and possibly requiring personal guarantees or increased security until liquidity improves.

2. Financial Strength:
   The balance sheet reflects a small but growing equity base (£8,102 as of 31/03/2024, up from £7,216 the prior year). The company holds current assets mainly in debtors (£308,309) and cash (£17,409). However, the current liabilities (£317,616) are nearly equal to current assets, leaving very limited working capital (£8,102). The rise in amounts owed to group undertakings (£104,407) signals intra-group financing dependency. The small share capital (£1,000) and retained earnings suggest limited financial buffer. The company is classified as small and has complied with filing deadlines, with audited accounts confirming appropriate accounting policies and no material misstatements.

3. Cash Flow Assessment:
   Cash at bank is low relative to current liabilities, indicating potential liquidity stress. Debtors are high, suggesting significant funds tied up in receivables, possibly from group companies (£297,731). The company's ability to convert these receivables into cash promptly will be critical for meeting short-term obligations. The presence of substantial tax and social security liabilities (£83,641) and other creditors (£118,307) further pressures cash flow. The limited number of employees (average 2) may control overhead costs, but any delay in debtor collections could affect operational continuity. Monitoring debtor aging and creditor payment terms is essential.

4. Monitoring Points:

• Timely collection of trade and intercompany receivables to maintain liquidity.
• Balance and movement in amounts owed to group undertakings and other creditors.
• Cash flow forecasts and actual cash balances to anticipate liquidity shortfalls.
• Changes in business activity or sector risks related to petroleum and natural gas support services.
• Stability and continuity of the current management team, especially after recent director changes.
• Compliance with tax and social security payments to avoid regulatory penalties.