Company Number: 14225719

Analysis Date: 2025-07-20 12:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CSTA Consulting Limited is a micro private limited company incorporated in 2022 and currently active. The company has modest net assets (£11,950 as of July 2024) and a positive working capital position, indicating an ability to meet short-term obligations. However, a significant decline in net assets and current assets compared to the previous year signals a contraction in financial scale and potential liquidity pressures. The absence of audit and reliance on micro-entity reporting limits transparency. The director’s loan was fully repaid during the latest year, which reduces related party risk. Given these factors, a credit facility could be approved on condition of regular financial monitoring and assurance of cash flow stability.

2. Financial Strength:
   The balance sheet shows a sharp decrease in total current assets from £75,410 in 2023 to £15,428 in 2024, alongside a reduction in net assets from £66,606 to £11,950. Fixed assets are negligible and declining. Current liabilities dropped but the net current asset buffer remains positive at £11,824. Long-term liabilities are minimal (£91). Shareholders’ funds have been significantly reduced, which may reflect distributions, losses, or change in capital structure, although no P&L details were provided. Overall, the company’s financial strength is weak with limited capital and asset base, but no immediate solvency concerns.

3. Cash Flow Assessment:
   The company presents a strong positive net current asset position, suggesting reasonable liquidity. The repayment of the director’s loan (£24,830) during the year is a positive cash flow event. However, the dramatic decrease in current assets signals potential volatility in working capital or revenue generation. The small size and micro-entity status imply limited operational scale and cash reserves. Continued ability to manage payables and maintain cash inflows is critical. Monitoring cash conversion cycles and receivables aging would be recommended.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital metrics to detect liquidity strain early.
• Review of debtor collection performance, given the reduction in current assets.
• Watch for any changes in director’s loan or related party transactions.
• Confirmation of ongoing contract stability and revenue generation in the consulting sector (SIC 82990).
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Any changes in ownership or management that could impact governance or financial control.