Company Number: 14471028

Analysis Date: 2025-07-20 11:54 UTC

1. Credit Opinion: APPROVE with monitoring
   Axis Consultancy Services Ltd is a recently incorporated private limited company (Nov 2022) operating in management consultancy (SIC 70229). The company shows a stable and positive net asset base and working capital position for its short operating history. The directors are experienced consultants with significant shareholdings and control. There is no indication of financial distress or overdue filings. However, as a young company with limited trading history and modest scale, continued monitoring of cash flow and profitability is advised before extending significant credit facilities.

2. Financial Strength
   The company’s balance sheet as at 31 December 2024 shows total net assets of £21,672, primarily funded by retained earnings (£21,572) and a nominal share capital (£100). Fixed tangible assets are minimal (£858 net), reflecting low capital intensity. Current assets of £22,899 exceed current liabilities of £1,922, resulting in net current assets (working capital) of £20,977, indicating strong short-term solvency. Deferred tax provision is modest (£163) and declining year-on-year. The financial position is stable with no signs of leverage or accumulated losses.

3. Cash Flow Assessment
   Cash at bank stands at £22,087 at year end, representing the majority of current assets and providing healthy liquidity. Debtors are low at £812, indicating effective receivables management or limited credit sales. Current liabilities are minimal (£1,922), resulting in a strong current ratio (~11.9x). The company has no long-term debt disclosed, suggesting low financial risk and no immediate pressure on cash flows. Director advances and repayments appear managed with a negligible net balance outstanding, indicating no adverse related party cash flow issues.

4. Monitoring Points

• Profitability and cash generation trends as the business scales beyond its start-up phase.
• Receivables ageing and debtor concentration to ensure timely collections.
• Any material changes in deferred tax provisions that may impact future cash flows.
• Directors’ advances and related party transactions for any potential liquidity risks.
• Compliance with filing deadlines and any changes in company status or director appointments.