Company Number: 12848988

Analysis Date: 2025-07-20 12:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Atterbury Payne Limited is an active private limited company operating in the solicitors sector. The company shows a positive but very modest net asset position and a working capital deficit in the latest year. The increase in current liabilities, including VAT and corporation tax, alongside rising debt to directors, signals some liquidity pressure. However, the company’s turnover and debtor balances have grown considerably year-on-year, suggesting business expansion. The director’s continued financial support via loans is a positive indicator of management commitment. Credit can be extended with caution, subject to monitoring of working capital and cash flow performance to ensure ongoing debt servicing capability.

2. Financial Strength: The company remains technically solvent with net assets of £432 at 31 May 2024, although this is a decline from £487 in the prior year. Fixed assets are minimal (£985) and primarily computer equipment, consistent with a service business. The major concern is the net current liabilities position of £553, reflecting current liabilities (£82,432) slightly exceeding current assets (£81,879). The substantial increase in liabilities compared to previous years is driven by VAT (£34,906) and corporation tax (£27,621), which may be timing-related but warrants scrutiny. Shareholders' funds remain low at £422, with minimal share capital (£10), indicating limited equity buffer.

3. Cash Flow Assessment: Cash balances have decreased to £5,493 from £10,175, indicating reduced liquidity. Debtors have increased significantly to £76,386, which demonstrates higher sales or billings but also potential collection risk. The director’s loan account has increased to £22,877, reflecting reliance on director funding to support liquidity. The company holds a bank loan and overdraft balance of £6,931, introducing formal debt obligations into current liabilities. The working capital deficit and decreased cash require close monitoring to ensure timely payment of short-term liabilities, especially tax and VAT obligations.

4. Monitoring Points:

• Track debtor aging and collection effectiveness to mitigate credit risk.
• Monitor VAT and corporation tax payment schedules to avoid penalties.
• Review ongoing cash flow forecasts and director loan account movements.
• Watch for any increase in bank debt or overdraft usage.
• Assess profitability trends and any changes in business volume or client base.
• Evaluate future filings for any sign of deteriorating liquidity or solvency.