COODEN CONSULTANTS LIMITED

Executive Summary

Cooden Consultants Limited presents a strong and improving financial position with substantial net current assets and no material liabilities, supporting its ability to meet credit obligations. The main risk lies in the growing debtor balance which requires ongoing monitoring to ensure liquidity remains robust. Approval for credit is recommended, conditional on satisfactory debtor management and regular financial reviews.

COODEN CONSULTANTS LIMITED - Analysis Report

Company Number: 12945576

Analysis Date: 2025-07-19 11:51 UTC

1. Credit Opinion: APPROVE with Monitoring Cooden Consultants Limited demonstrates a solid liquidity position and improving financial strength, supporting its ability to service debt obligations. The company’s net current assets have grown substantially from £116k in 2020 to £360k in 2023, indicating positive business momentum and effective working capital management. While the company is relatively young and small, the director's commitment to repay the overdrawn directors' account and the absence of audit exemptions concerns reinforce confidence. Conditional approval is recommended with attention to ongoing debtor management and cash flow consistency.

2. Financial Strength: The balance sheet shows a strong increase in net current assets and shareholders' funds over the past four years, rising from £116k to £360k. The company holds minimal fixed assets (not detailed, implying lightweight asset base typical of consultancy), but current assets, especially trade receivables, have increased significantly (£315k in 2023 vs £26k in 2022). This is balanced by low current liabilities (£47k), resulting in a robust net working capital position. The small share capital (£100) is typical for a private limited company and equity is supported mainly by retained earnings. No long-term debt or significant liabilities are reported, indicating a conservative capital structure.

3. Cash Flow Assessment: Cash balances have declined from £268k in 2022 to £92k in 2023 despite overall growth in current assets, reflecting increased receivables. This concentration in debtors warrants monitoring as it may impact liquidity if collections slow. However, the company maintains a healthy margin between current assets and liabilities, and the director’s note on scheduled repayment of the directors’ current account overdraft within nine months is positive for short-term liquidity. The company reports no bank borrowings or overdrafts, reducing financial risk.

4. Monitoring Points:

• Debtor ageing and collection efficiency: The significant rise in trade and other receivables needs close scrutiny to ensure timely conversion to cash.
• Cash flow trends: Continued monitoring of cash balances to ensure liquidity is not compromised by debtor concentration.
• Directors’ current account: Confirmation that the overdraft is repaid within the stated period to avoid liquidity strain.
• Revenue recognition and profit trends: As the income statement is not filed, regular updates on profitability and revenue growth are essential.
• Any increase in liabilities or borrowing that could leverage the balance sheet.