Company Number: 15113770

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: APPROVE with caution. AX Creative Ltd is a newly incorporated micro-entity with a clean filing record and positive net assets. The company shows modest but positive net current assets and no overdue filings, indicating good compliance and initial financial stability. However, due to its very recent incorporation and limited operating history (just over one year), the credit risk is inherently higher. Approval is recommended for modest credit facilities, with limits aligned to the company’s scale and initial financial strength.

2. Financial Strength: The balance sheet as of 30 September 2024 shows total net assets of £7,866, comprising fixed assets of £958 and net current assets of £6,908. This demonstrates a positive equity base for a micro business, with current assets exceeding current liabilities by a comfortable margin. The company’s capital and reserves entirely reflect shareholder funds, indicating no external debt. The financial position is sound for a start-up micro company, but the absolute values are small, reflecting the early stage.

3. Cash Flow Assessment: Current assets of £11,725 versus current liabilities of £4,817 yield net current assets (working capital) of £6,908, a healthy liquidity position suggesting the company can cover its short-term obligations. The absence of any long-term liabilities or borrowings reduces financial risk. However, actual cash flow trends (inflow/outflow) are not detailed, so ongoing monitoring of cash generation and collection cycles is advised. Given the company is a one-person operation (director only), operational cash flow may be limited but manageable.

4. Monitoring Points:

• Track future filing compliance and timeliness to avoid governance or credit rating issues.
• Monitor growth in turnover and profitability once trading data becomes available.
• Watch working capital trends to ensure liquidity remains sufficient as the business scales.
• Observe any changes in director or ownership structure, especially as all control is currently concentrated in one individual.
• Evaluate credit utilization and repayment behavior if credit facilities are extended.