ACORN STATISTICAL ANALYSIS LTD

Executive Summary

Acorn Statistical Analysis Ltd shows a sound opening financial position with positive net assets and strong liquidity, reflecting prudent initial management. However, as a start-up with limited trading history, conditional credit approval is recommended, contingent upon ongoing performance reviews and cash flow monitoring. Continued oversight will mitigate risk as the company establishes its market presence.

ACORN STATISTICAL ANALYSIS LTD - Analysis Report

Company Number: 14729947

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Acorn Statistical Analysis Ltd is a very young company, incorporated in March 2023, with its first set of accounts filed for the year ending April 2024. The company exhibits a positive net asset position and a modest working capital surplus, indicating initial financial stability. However, given the short operating history and modest scale, approval should be conditional on monitoring future trading performance and cash flow generation to ensure ongoing viability and debt servicing capability.

2. Financial Strength:
   The balance sheet shows net assets of £12,289 with fixed assets at £749, primarily office equipment. Current assets total £23,871, predominantly cash (£19,468) and debtors (£4,403), against current liabilities of £12,331. The company has a healthy net current asset position of £11,540, suggesting it can meet short-term obligations comfortably. Shareholders' funds consist mainly of retained profits (£12,189) and a nominal share capital (£100), indicating initial capitalisation and some profitability or capital injection since inception.

3. Cash Flow Assessment:
   Cash reserves of £19,468 represent a strong liquidity position relative to liabilities, providing a buffer to meet immediate cash demands. The current liabilities include corporation tax (£9,115) and other accruals, which the company must plan to pay promptly. The working capital surplus supports operational financing needs, but as the company scales, monitoring cash conversion cycles and receivables collection will be critical to sustain liquidity.

4. Monitoring Points:

• Track revenue growth and profitability trends over the next 1-2 years to confirm business viability.
• Monitor cash flow statements closely for any signs of operating cash deficits.
• Ensure timely payment of corporation tax and other statutory obligations to avoid penalties.
• Review debtor ageing to manage credit risk and working capital efficiency.
• Watch for changes in director control or capital structure that may affect governance or financial stability.