ACTION DYNAMICS LIMITED

Executive Summary

Action Dynamics Limited displays strong financial health with consistent growth in net assets and excellent liquidity, supporting its ability to meet credit obligations. The company’s sound working capital position and low liabilities mitigate short-term risk, making it a suitable candidate for credit facilities. Ongoing monitoring should focus on liquidity and operational cash flow as the business develops.

ACTION DYNAMICS LIMITED - Analysis Report

Company Number: 13597893

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: APPROVE
   Action Dynamics Limited demonstrates a solid financial position for a micro-entity with consistent growth in net assets and net current assets over the last three years. The company shows strong working capital and low current liabilities relative to current assets, indicating a good capacity to meet short-term obligations. There is no indication of financial distress or adverse credit risk factors such as overdue filings or director disqualifications. Given this, the company appears capable of servicing credit facilities, subject to standard lending terms.

2. Financial Strength:
   The balance sheet shows steady growth from £33,375 net assets in 2021 to £125,074 in 2024, nearly quadrupling shareholder equity. Fixed assets have increased moderately from £3,790 to £12,222, suggesting reinvestment in operational capacity. The company maintains a strong liquidity position, with net current assets rising from £29,585 to £114,027, reflecting sound working capital management. The low level of current liabilities (£24,009 in 2024) relative to current assets (£136,014) supports financial stability.

3. Cash Flow Assessment:
   The strong net current assets indicate ample short-term liquidity, enabling the company to comfortably cover immediate liabilities. Although detailed cash flow statements are not provided, the improving working capital and absence of material creditor pressure suggest positive operational cash flows. The company’s micro-entity status and limited employee base (average 1 employee) imply relatively low fixed overheads, reducing cash flow volatility risk.

4. Monitoring Points:

• Continue monitoring working capital trends to ensure sustained liquidity, particularly if business scales up.
• Watch for any increase in current liabilities that might strain short-term cash flows.
• Track profitability and cash flow data when available to confirm ongoing debt servicing capacity.
• Review any changes in director or ownership structure that might affect governance or risk profile.