CG DEVELOPMENT CONSULTANCY LTD

Executive Summary

CG Development Consultancy Ltd is a newly established small IT consultancy with improving financial performance and a clean balance sheet characterized by positive net assets and working capital. The company shows sound liquidity and no long-term debt, supporting its ability to meet credit obligations. Given these factors, credit approval is recommended with routine monitoring of cash flow and liabilities to manage future risks.

CG DEVELOPMENT CONSULTANCY LTD - Analysis Report

Company Number: 13989752

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: APPROVE
   CG Development Consultancy Ltd demonstrates a stable and improving financial position over its first two years of operation. The company is active, with no overdue filings, and is solely controlled by a director with full share and voting rights. The absence of debt beyond current liabilities and positive net assets indicate a low credit risk. Given the company's improving net current assets and retained earnings, it is capable of servicing modest credit facilities. The company's small scale and limited liabilities reduce exposure, supporting a straightforward credit approval.

2. Financial Strength:
   The balance sheet shows net assets of £11,220 as of 31 March 2024, up from £5,741 the previous year, reflecting positive retained earnings growth. The company holds no fixed assets and has no long-term debt, indicating a simple capital structure. Current liabilities decreased from £17,963 to £7,577, improving liquidity ratios. The company relies solely on cash and has no trade debtors, which is typical for a consultancy with immediate payment terms or low credit sales risk. Overall, the financial strength is modest but improving, with an equity buffer sufficient for the company’s scale.

3. Cash Flow Assessment:
   Cash at bank decreased slightly from £23,704 to £18,797, but remains adequate relative to current liabilities of £7,577, resulting in net current assets of £11,220. This positive working capital position suggests the company can meet short-term obligations comfortably. The absence of trade debtors means cash flow depends on timely payments for services rendered. No overdrafts or external borrowings are reported, minimizing liquidity risk. The company’s cash position and low liabilities imply satisfactory operational liquidity and working capital management.

4. Monitoring Points:

• Monitor the company’s cash conversion cycle, given zero debtors, to ensure consistent cash inflows.
• Keep an eye on any increase in current liabilities or introduction of long-term debt that may strain liquidity.
• Review director’s withdrawals or dividends, as the £24,428 dividend paid in 2024 was significant relative to net assets.
• Watch for changes in business scale or client concentration that could impact revenue stability.
• Continue monitoring filing compliance and any director changes, given the single director structure.