Company Number: 14714671

Analysis Date: 2025-07-20 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AFFINIA GROUP ADVISORY LIMITED is a newly incorporated private limited company (March 2023) operating in accounting and auditing services. The company demonstrates group backing, being a subsidiary with 75-100% ownership by Affinia Group Holdings Limited, which mitigates some standalone risk. However, the company’s very limited financial history and modest net assets (£100) constrain a full credit approval at this stage. The absence of profit and minimal working capital suggest limited internal cash generation capacity. Credit approval should therefore be conditional upon continued group support and monitoring of trading performance and liquidity.

2. Financial Strength:
   The company’s balance sheet as of 31 August 2023 shows current assets of £26,795 (almost entirely cash) offset by current liabilities of £26,695, yielding net current assets of just £100 and shareholders’ funds of £100. This indicates a very thin equity base and minimal financial buffer. The first period of accounts shows no profit, with turnover of £1.68m and cost of sales nearly matching, resulting in zero net profit. The company is in a start-up phase and has limited fixed assets or reserves. Financial strength is weak on a standalone basis but supported by the parent group affiliation.

3. Cash Flow Assessment:
   Cash of £26,695 at the period end represents the bulk of current assets, indicating some liquidity to meet short-term obligations (£26,695 current liabilities). Net current assets are positive but marginal. Working capital management will be critical going forward to ensure the company can meet obligations without external funding. The transfer of additional non-regulated services into the company in February 2024 may increase revenue and cash flow but this remains to be evidenced.

4. Monitoring Points:

• Monitor subsequent trading results and profitability trends to assess improvement in internal cash generation.
• Review updated balance sheets for growth in equity and net assets to improve financial resilience.
• Track cash balances and working capital ratios to ensure ongoing liquidity.
• Watch for any changes in group support or shareholder structure impacting credit risk.
• Confirm timely filing of accounts and confirmation statements to maintain compliance.