AQA CONSULTING LTD

Executive Summary

AQA Consulting Ltd, a micro private limited company, shows a stable and compliant financial position with positive working capital and net assets around £7,500. While the company is small and early in its lifecycle, its clean balance sheet and timely compliance support a credit approval for low-risk exposure. Close monitoring of cash flow and operational growth is recommended to manage future credit risk.

AQA CONSULTING LTD - Analysis Report

Company Number: 14194778

Analysis Date: 2025-07-20 18:27 UTC

1. Credit Opinion: APPROVE – AQA Consulting Ltd is a newly incorporated micro-entity showing a stable financial position with modest net assets and positive working capital. The company has no overdue filings, indicating good compliance and governance. Given its small size and limited financial history, credit exposure should be conservative but the company currently demonstrates sufficient financial stability to meet short-term obligations.

2. Financial Strength: The balance sheet as of 30 June 2024 shows current assets of £11,882 against current liabilities of £4,304, yielding net current assets (working capital) of £7,578. Net assets equal shareholders’ funds of £7,578, indicating no long-term liabilities and a clean balance sheet. The stability of net assets and working capital compared to previous years reflects consistent financial management. The company’s small scale and micro-entity status limit complexity but also cap capital resources.

3. Cash Flow Assessment: Current assets are primarily short-term and sufficient to cover current liabilities almost threefold, suggesting adequate liquidity. The positive net current assets indicate the company can service immediate debts and operational expenses. However, the relatively low absolute cash and asset base means liquidity buffers are thin, so cash flow monitoring is necessary as the company grows.

4. Monitoring Points:

• Track revenue growth and profitability once P&L data becomes available to assess sustainability.
• Monitor debtor collections and creditor payment terms to ensure working capital remains positive.
• Watch for any increase in liabilities or overdrafts that could stress liquidity.
• Observe compliance with filing deadlines to maintain corporate governance standards.
• Assess management’s ability to scale operations while maintaining financial discipline.