Company Number: 14379456

Analysis Date: 2025-07-29 16:09 UTC

1. Credit Opinion: APPROVE with conditions. Commercial Edge Ltd is a recently incorporated private limited company (since September 2022) engaged in management consultancy activities. The latest financials to 31 December 2024 show modest but positive net current assets and shareholders funds, indicating initial capitalisation and working capital sufficiency. However, the company is still at an early stage, with limited financial history and minimal asset base. Approval is recommended conditionally, subject to continued timely filing, monitoring of cash flow, and verification of contract revenue and client diversification to mitigate concentration risk.

2. Financial Strength: The balance sheet as of 31 December 2024 reports total net current assets of £5,579 and shareholders funds of £7,661, reflecting a net asset position. Fixed tangible assets total £2,082, primarily plant and machinery, net of depreciation. Compared to the previous period ending September 2023, where net current assets and shareholders funds were nominal (£2), this represents an improvement and initial capital injection. Current liabilities of £6,255 are covered by current assets of £11,834, providing a current ratio of approximately 1.9 times, which is adequate for short-term obligations.

3. Cash Flow Assessment: Cash at bank stands at £7,109, contributing significantly to liquidity. Trade debtors amount to £4,725, indicating receivables exposure that should be monitored for collection risk. The working capital position is positive, with current assets exceeding current liabilities by £5,579. The absence of employees and payroll liabilities reduces fixed overheads, which supports cash flow resilience. However, the modest size and short trading history require cautious assessment of cash inflows from operational activities going forward.

4. Monitoring Points:

• Continued timely submission of accounts and confirmation statements to avoid compliance issues.
• Monitoring cash flow trends and debtor days to ensure receivables are collected promptly.
• Watch for contract wins, client diversification, and revenue growth to support repayment capacity.
• Keep track of any increase in liabilities or borrowings that may stress liquidity.
• Assess any changes in director appointments or control that might affect governance.
• Review any subsequent financial statements for profitability and cash generation improvements.