Company Number: 14684625

Analysis Date: 2025-07-20 17:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AWB and Son Training Limited is a newly incorporated small private limited company operating in IT consultancy (SIC 62020). The company has a minimal operating history, with its first accounts to 31 March 2024 showing modest net current assets of £136 and very limited equity (£136). The close balance between current assets (£6,007) and current liabilities (£5,871) indicates a fragile liquidity position. Additionally, £4,740 of current liabilities are amounts owed to group undertakings, suggesting intra-group funding support which may not be sustainable long term. Given the limited trading history, low capital base, and tight working capital, credit approval should be conditional on ongoing monitoring and possibly secured facilities or guarantees.

2. Financial Strength:
   The balance sheet shows total assets of £6,007 comprised of stocks (£3,390), cash (£2,523), and debtors (£94). Current liabilities of £5,871 are primarily intra-group payables (£4,740), with other creditors (£1,100) and tax/social security payables (£31). Shareholders’ funds stand at £136, reflecting the initial £100 share capital plus retained earnings of £36. The company’s net asset position is positive but very modest, indicating limited financial cushioning against adverse events. The absence of fixed assets and reliance on working capital limits asset backing for credit.

3. Cash Flow Assessment:
   Cash of £2,523 provides a limited liquidity buffer. The net current assets of £136 indicate the company can just cover its short-term obligations. The working capital position is tight, and the company’s ability to generate cash flows sufficient to service debts and operating needs is unproven given its short trading history. The presence of intra-group liabilities may provide some flexibility but also introduces potential risk if group support is withdrawn.

4. Monitoring Points:

• Liquidity trends in subsequent periods, particularly cash and net current assets.
• Changes in intra-group balances and the terms of any related party funding.
• Profitability trends and retained earnings growth to build equity.
• Timely filing of future accounts and confirmation statements.
• Directors’ conduct and any changes in management or ownership that may impact governance.