BCC CONSULTANCY LTD

Executive Summary

BCC Consultancy Ltd is a financially sound, cash-strong IT consultancy with steady profitability and robust working capital. The company’s strong equity position and absence of debt support credit approval, though monitoring of dividends and receivables is advised to maintain liquidity. Overall, the business appears well-managed and capable of meeting credit obligations.

BCC CONSULTANCY LTD - Analysis Report

Company Number: 13645474

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: APPROVE
   BCC Consultancy Ltd demonstrates strong financial health with consistent profitability, growing equity, and positive working capital. The company has no long-term debt and maintains a robust cash position, indicating good capacity to service credit facilities. The director has substantial control and has managed the business prudently since incorporation in 2021. Although relatively young, the company shows sound financial stewardship and resilience in the IT consultancy sector.

2. Financial Strength:
   The balance sheet as of 30 September 2024 shows shareholders’ funds of £131,577, up from £117,059 the previous year, reflecting retained profits after dividends. Current assets are £160,356, primarily cash, with no trade debtors, against current liabilities of £28,779, resulting in net current assets of £131,577. The company is free of fixed asset burdens and long-term liabilities, supporting a strong equity base and liquidity.

3. Cash Flow Assessment:
   Cash at bank increased slightly from £145,469 to £160,356, demonstrating stable cash inflow management. The company carries no bank loans or overdrafts, and current liabilities are manageable relative to cash reserves. The absence of trade debtors in 2024 may suggest prompt payment from clients or limited credit sales, enhancing liquidity. A director’s loan of £3,023 exists, interest-free and repayable on demand, which poses minimal risk.

4. Monitoring Points:

• Monitor debtor balances to ensure continued prompt collections or assess if credit terms change.
• Watch dividend levels which have risen significantly (£60,000 in 2024), to avoid excessive cash extraction that could strain liquidity in future downturns.
• Track market conditions in the IT consultancy sector as economic shifts could impact contract flow and revenue.
• Review any changes in director loan balances and repayment plans.