ADE TRANSITION CONSULTING LTD

Executive Summary

ADE Transition Consulting Ltd presents as a low-risk lending candidate with improving financial metrics, solid liquidity, and stable management. The company’s balance sheet reflects growth in net assets and cash reserves, supporting its ability to meet debt obligations. Continued monitoring of receivables and liabilities will ensure ongoing credit quality.

ADE TRANSITION CONSULTING LTD - Analysis Report

Company Number: 13282326

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion: APPROVE
   ADE Transition Consulting Ltd demonstrates a sound financial position with positive net current assets and net assets that have approximately doubled in the last year, indicating growth. The company maintains healthy liquidity with an increasing cash balance and manageable current liabilities. The directors have maintained compliance with filing requirements and there are no adverse indicators such as director disqualifications or insolvency proceedings. The company’s business model in management consultancy appears stable with low fixed asset exposure and limited staff, reducing operational risk. The strong owner control by Mrs Rhian Ceri Blaszkowicz also suggests continuity in leadership.

2. Financial Strength:
   The company’s balance sheet shows net assets of £20,809 as at 31 March 2024, up from £10,343 the prior year. This improvement is largely due to growth in current assets, notably cash which increased from £20,530 to £26,281, and trade debtors which nearly doubled. Tangible fixed assets are negligible (£198), reflecting low capital intensity. Current liabilities increased modestly from £19,606 to £23,229 but remain well covered by current assets, yielding a strong net current asset position (£20,649). Share capital is minimal at £100, with retained earnings accounting for the bulk of equity, demonstrating accumulation of profits or reserves.

3. Cash Flow Assessment:
   Cash at bank rose by approximately £5,700 year-on-year, indicating positive cash generation or effective cash management. Trade debtors increased but remain within a reasonable range relative to current liabilities, suggesting timely collections without excessive credit risk. Current liabilities are primarily taxation and social security related, implying no material borrowings or external debt obligations. The company’s working capital position is strong, providing sufficient liquidity to meet short-term obligations comfortably.

4. Monitoring Points:

• Continue monitoring trade debtor aging to ensure collections remain timely and mitigate credit risk exposure.
• Watch for any significant changes in current liabilities, particularly tax liabilities, which could impact liquidity.
• Observe turnover and profitability trends in future accounts to confirm continued growth and cash flow stability.
• Management should maintain compliance with filing deadlines to avoid penalties and preserve creditworthiness.
• Assess any changes in ownership or director composition that might affect governance or financial stewardship.