Company Number: 14251414

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: APPROVE
   CRAY CONSULTING LTD demonstrates a solid liquidity position with positive working capital and net assets that have grown moderately from £47,212 to £52,361 over the last financial year. The company’s cash balance has increased substantially, indicating an improved ability to meet short-term obligations. The director, who is also the sole significant controller, shows continuity in management, which supports stable stewardship. There are no overdue filings or signs of financial distress, and current liabilities are well covered by current assets. Given the company’s young age (incorporated in 2022) and steady financial growth in a resilient sector (IT consultancy and software development), the risk profile is low to moderate, supporting credit approval.

2. Financial Strength:
   The balance sheet shows net current assets of £52,361 as of 31 July 2024, up from £47,212 the prior year, reflecting steady financial improvement. The company holds no fixed assets, suggesting an asset-light business model typical in IT consultancy. Shareholders’ funds equal net assets, indicating no long-term debt and a clean capital structure. Director loans are present (£24,007), but given the cash position, these do not represent an immediate risk. Overall, the company maintains a healthy equity base and no significant leverage.

3. Cash Flow Assessment:
   Cash on hand increased from £73,381 in 2023 to £101,245 in 2024, showing strong liquidity. Current liabilities stand at £48,884, including VAT, taxes, social security, and director loans repayable within one year. The company’s cash position covers these liabilities by more than two times, indicating excellent short-term liquidity and working capital management. The absence of employees and fixed assets implies low operating overheads, which supports cash flow stability.

4. Monitoring Points:

• Track growth in revenues and profitability as the company matures beyond its start-up phase (not disclosed in current accounts).
• Monitor director loans and their repayment terms to ensure they do not become a cash flow strain.
• Watch for any increases in current liabilities, especially tax or social security liabilities, which could impact liquidity.
• Ensure continued timely filing of accounts and confirmation statements to avoid regulatory risk.
• Observe sector developments affecting IT consultancy demand to assess future revenue stability.