BEYOND WATER CONSULTING LTD

Executive Summary

Beyond Water Consulting Ltd is a micro-entity with strong working capital but minimal equity and operating history. The company’s liquidity profile supports short-term obligations, yet the very slim net asset base and increase in provisions highlight some financial vulnerability. Credit exposure should be limited and closely monitored until a more established trading record and profitability are demonstrated.

BEYOND WATER CONSULTING LTD - Analysis Report

Company Number: 14250286

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Beyond Water Consulting Ltd is a recently incorporated micro private limited company showing modest net assets and positive net current assets. The financial statements indicate a very small equity base (£12) and minimal fixed assets, but there is a strong working capital position driven by current assets exceeding current liabilities significantly. The company is not yet generating substantial profits or retained earnings. Given the limited operating history and minimal staff, credit facilities should be extended with caution and continuous monitoring, preferably secured or limited in amount until further financial track record is established.

2. Financial Strength:
   The company’s balance sheet reflects a micro-entity with total net assets of £12 as at 31 July 2024, a marginal increase from £11 in the prior year. The fixed assets are minimal (£1,212), and the company holds net current assets of £10,612, a strong liquidity indicator. However, significant provisions for liabilities (£10,012) and accruals (£1,800) offset the asset base, leaving shareholders’ funds extremely thin. The company demonstrates no long-term borrowings or evident gearing, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets of £10,841 compared to current liabilities of only £229 show a robust short-term liquidity position, indicating the company can comfortably meet its immediate obligations. The increase of net current assets from £3,890 in 2023 to £10,612 in 2024 suggests improved working capital management or collection of receivables. However, the absence of employees and limited fixed asset investment may imply minimal operational cash flow generation. No detailed cash flow statement is provided, so monitoring actual cash inflows and outflows is advised.

4. Monitoring Points:

• Profitability and accumulation of retained earnings to build equity buffer.
• Trends in provisions for liabilities, which have increased significantly and may impact future cash requirements.
• Cash flow statements and operational cash generation once available.
• Any expansion in fixed assets or staffing which could increase financial demands.
• Timely filing of accounts and confirmation statements to ensure compliance continuity.
• Changes in ownership or management that could affect credit risk.