APPLIED PM CONSULTANCY LTD

Executive Summary

Applied PM Consultancy Ltd exhibits a strong and improving financial profile with positive net assets and net current assets, supported by good liquidity and increasing retained earnings. The company’s governance and compliance record is sound, and cash flow indicators suggest adequate capacity to meet credit obligations. Continued monitoring of debtor management and creditor balances is recommended to sustain creditworthiness.

APPLIED PM CONSULTANCY LTD - Analysis Report

Company Number: 14262068

Analysis Date: 2025-07-29 20:03 UTC

1. Credit Opinion: APPROVE
   Applied PM Consultancy Ltd demonstrates a solid financial position with positive net assets and net current assets, indicating good short-term liquidity and overall solvency. The company shows growth in net assets from £31,110 in 2023 to £54,319 in 2024, reflecting retained earnings accumulation and sound financial stewardship. The absence of overdue filings and the management's adherence to regulations support confidence in governance. Given the company’s positive working capital, manageable current liabilities, and increasing equity base, the company appears capable of servicing credit facilities.

2. Financial Strength:
   The balance sheet shows net assets of £54,319 as of July 2024, up from £31,110 in the prior year, driven by growth in retained profits within shareholders’ funds. Tangible fixed assets have increased moderately to £4,691, reflecting investment in plant and equipment. Current assets total £92,641, including cash of £44,816 and debtors of £47,825, comfortably covering current liabilities of £43,013. The net current assets of £49,628 indicate a strong working capital position. The company’s capital structure is simple, with £100 called-up share capital and the remainder in retained earnings, pointing to no external debt reliance.

3. Cash Flow Assessment:
   Cash at bank has increased from £17,908 to £44,816 year-on-year, indicating improved liquidity and cash generation ability. Debtor balances have grown but remain well-managed relative to current liabilities. The current liabilities are primarily taxation and social security costs (£41,888), which should be monitored for timely settlement. The positive net current assets and increasing cash balance suggest the company has adequate liquidity to meet short-term obligations and invest in growth, providing comfort for credit risk.

4. Monitoring Points:

• Maintain close monitoring of debtor collection periods to ensure cash flow remains strong, given the increase in trade and other debtors.
• Watch tax and social security creditor balances to prevent build-up of liabilities that could impair liquidity.
• Track profitability trends in future accounts filings to confirm ongoing growth in retained earnings and net assets.
• Ensure timely filing of accounts and confirmation statements continues to avoid regulatory risks.