Company Number: 13167864

Analysis Date: 2025-07-20 14:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ARI COLE CONSULTANCY LTD demonstrates modest improvement in its financial position over the past three years, moving from significant net liabilities to a small positive net asset position (£45) as of 31 January 2024. However, current liabilities still exceed current assets, resulting in negative working capital (-£376), which may constrain liquidity. Given the company's micro-entity status and early stage of operation (incorporated 2021), the credit risk is manageable but requires close monitoring of cash flow and debtor management. Approval is conditional upon continued improvement in liquidity and maintenance of up-to-date filings.

2. Financial Strength:

• The balance sheet shows minimal fixed assets (£751) and very limited share capital (£2).
• Net assets improved from a negative £1,801 in 2023 to a positive £45 in 2024, indicating some recovery in equity.
• The company carries accrued expenses (£330) and current liabilities (£2,076) that are higher than current assets (£1,700), leading to net current liabilities.
• The micro-entity classification indicates small scale, but the improving net asset position is a positive sign.
• No audit was required, and the accounts are unaudited, which limits financial transparency.

3. Cash Flow Assessment:

• Current assets are largely cash and equivalents; however, they remain insufficient to cover immediate liabilities, suggesting tight liquidity.
• Negative net current assets highlight a working capital deficiency which could impact short-term obligations.
• No employees beyond directors, which reduces fixed operating costs but also indicates limited business scale.
• The company’s ability to meet obligations may depend on timely collection of receivables or capital injections by shareholders.

4. Monitoring Points:

• Track improvements in working capital and ensure current assets consistently cover current liabilities.
• Monitor any changes in director/shareholder funding or external financing arrangements.
• Observe timely filing of accounts and confirmation statements to avoid compliance risks.
• Watch for any changes in credit terms with suppliers or client payment patterns that impact cash flow.
• Review any expansion in fixed assets or staff that could increase financial burden.