Company Number: 13139424

Analysis Date: 2025-07-20 17:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Company Triage Ltd exhibits significant growth in net current assets and shareholders' funds over the past year, indicating improving financial strength. However, the company's current liabilities have also increased substantially, notably taxation and social security, which rose sharply from £335,620 in 2023 to £1,859,140 in 2024. The large debtor balance (over £4.5 million) compared to a low cash balance (£2,401) suggests liquidity risk due to potential delays in receivables collection. Management loans to the director are sizeable but show repayments, indicating some cash flow management. Approval is recommended with conditions: close monitoring of cash flow and debtor collections, and potentially requiring personal guarantees or additional collateral.

2. Financial Strength:

• Net assets increased markedly from £4,690 (2023) to £1,145,817 (2024), showing improved equity and financial footing.
• Current assets grew from approx. £1.55 million to £4.53 million, predominantly driven by a large increase in debtors.
• Current liabilities more than doubled to £3.39 million, with a major increase in taxation and social security liabilities, possibly indicating accumulated payroll or VAT obligations.
• The company's capital base remains minimal (£200 share capital), so net assets rely on retained earnings and working capital improvements.
• Overall, the balance sheet shows growth but with increased liability concentration and heavy reliance on receivables.

3. Cash Flow Assessment:

• Cash on hand reduced significantly to £2,401 from £11,951, raising concerns about immediate liquidity.
• Debtors represent over 99% of current assets, indicating a heavy concentration of funds tied up in receivables, which may affect the ability to meet short-term obligations.
• Net current assets of £1.15 million provide a buffer, but the risk lies in the realisability of debtors and timing of cash inflows.
• The director’s loan account shows repayments, which is positive, but the loan remains substantial and unsecured, potentially impacting cash flow if repayment is delayed.
• Working capital management and debtor collection efficiency are critical areas for ongoing scrutiny.

4. Monitoring Points:

• Monitor debtor aging and collection period closely to ensure receivables convert to cash in a timely manner.
• Track the build-up of taxation and social security liabilities to avoid cash flow strain or potential enforcement actions.
• Review cash flow forecasts regularly to identify liquidity gaps early.
• Evaluate any changes in director loan balances and repayment schedules.
• Watch for any adverse changes in current liabilities or sudden deterioration in net current assets.