COLLECTIVE DISCOVERY LIMITED

Executive Summary

Collective Discovery Limited shows a robust financial footing for a micro-entity, with strong net assets and liquidity supporting its management consultancy operations. The company meets all compliance requirements and displays sound short-term financial health, justifying a credit approval for modest facilities. Ongoing monitoring of cash flow and compliance filings is recommended to maintain credit confidence.

COLLECTIVE DISCOVERY LIMITED - Analysis Report

Company Number: 12559818

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: APPROVE
   Collective Discovery Limited demonstrates a solid financial position for a micro-entity with steady growth in net assets and net current assets over the last four years. The company’s current liquidity position is strong with working capital significantly positive, indicating good short-term debt servicing capability. The absence of audit requirements and a single director structure does limit transparency but does not raise immediate credit concerns. The company is active, compliant with filing deadlines, and in good standing.

2. Financial Strength:
   The balance sheet shows an increasing trend in shareholders’ funds from £8,477 in 2023 to £23,277 in 2024, reflecting retained earnings or capital injections. Fixed assets are minimal (£1,442) consistent with a service-oriented consultancy business. Current assets have increased substantially to £34,323, mostly likely cash or receivables, while current liabilities have increased to £12,498 but remain well covered. The net current assets of £21,825 indicate a healthy working capital buffer. Overall, the company has a strong equity base relative to its size and liabilities, with no long-term debt reported.

3. Cash Flow Assessment:
   The increase in current assets, particularly cash or equivalents, suggests good liquidity and operational cash flow management. The company employs only one person (the director), which keeps overheads low and cash burn minimal. Positive net current assets and absence of overdue filings imply sound cash flow to meet obligations as they arise. However, the lack of detailed profit and loss data limits a full cash flow analysis. Continued monitoring of liquidity and receivables collection is advised.

4. Monitoring Points:

• Maintain current filing compliance and watch for any delays which could signal operational or financial stress.
• Monitor working capital trends and any material increase in liabilities.
• Keep an eye on director changes or significant control updates that may impact governance.
• Review annual accounts when available for any changes in profitability or cash generation.
• Assess client concentration risk or dependency if revenue details become available.