BURST SALES LTD

Executive Summary

BURST SALES LTD is a small, stable management consultancy with a modest but positive financial position and no filing issues. While its scale and lack of detailed profit data warrant caution, the company demonstrates adequate working capital and clear ownership. Credit approval is suitable for low-risk facilities with ongoing monitoring of liquidity and governance.

BURST SALES LTD - Analysis Report

Company Number: 14409346

Analysis Date: 2025-07-20 13:20 UTC

1. Credit Opinion: APPROVE with conditions
   BURST SALES LTD is a very small (micro) management consultancy company, active and with no adverse filing issues. Its financials show modest but positive net assets (~£6,800), stable working capital, and no overdraft or creditor warnings. The director is the sole significant controller, indicating clear accountability. However, the limited scale, minimal asset base, and absence of detailed profit & loss data suggest a cautious credit approach. Approval is recommended for low-risk, short-term credit facilities with regular monitoring.

2. Financial Strength:
   The company’s balance sheet is stable but minimal. Fixed assets are negligible (£3,040), and current assets have increased from £9,056 to £12,992, supporting working capital needs. Current liabilities rose from £5,158 to £9,235, but net current assets remain positive at £3,757, indicating the company can meet short-term obligations. Shareholders’ funds are consistent (~£6,800), reflecting retained earnings or capital injections. The micro-entity status and exemption from audit limit visibility into profitability and cash generation.

3. Cash Flow Assessment:
   Cash and equivalents are not separately reported in 2024 accounts but were £5,806 in 2023. The increase in current liabilities relative to current assets suggests some tightening of liquidity but still positive net working capital. With just one employee (the director) and low overheads implied, operating cash flow is likely modest but sufficient to cover liabilities. Absence of audit and profit & loss details requires conservative assumptions; therefore, credit limits should consider a buffer for liquidity fluctuations.

4. Monitoring Points:

• Track future filings for any overdue accounts or confirmation statements.
• Monitor changes in current liabilities to ensure no rapid increase that could strain liquidity.
• Watch for any director changes or new significant controllers that may impact governance.
• Request interim management accounts or cash flow forecasts periodically for ongoing credit exposure.
• Observe any material shifts in client base or contract wins/losses, given consultancy income dependency.