Company Number: 14679647

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: APPROVE with conditions. Divine Ox Ltd is a newly incorporated micro-entity in the management consultancy sector with a solid net asset position and positive working capital. The company shows no signs of financial distress, and directors have established a clean governance structure with no adverse records. However, as a start-up without trading history beyond its first year, credit exposure should be moderate and contingent on continued operational performance and timely filing of future accounts.

2. Financial Strength: The balance sheet as of 29 February 2024 indicates £35,552 in current assets against minimal current liabilities of £275, resulting in strong net current assets of £35,277. After accounting for provisions (£3,306) and accruals/deferred income (£17,575), net assets stand at £14,396, which equals shareholders’ funds. The equity base is modest but positive, reflecting initial capital and retained earnings or accumulated reserves. The absence of fixed assets and no reported borrowings suggest a lean operating model reliant on working capital management.

3. Cash Flow Assessment: Current assets are predominantly liquid given the nature of a consultancy business (likely cash and receivables). The low level of creditors and no significant debt obligations indicate good short-term liquidity. The company has no employees, thus limited payroll obligations, which reduces cash outflow pressures. The presence of accruals and deferred income requires monitoring as these could represent future cash flow commitments. Overall, liquidity appears sufficient for present operations, but cash flow sustainability depends on revenue generation and client payment terms.

4. Monitoring Points:

• Track revenue growth and profitability in subsequent accounting periods to confirm business viability.
• Monitor working capital trends, especially receivables and deferred income balances.
• Ensure continued compliance with filing deadlines to avoid penalties and maintain creditor confidence.
• Watch for any changes in directors or PSCs that could affect governance or control.
• Evaluate the company's ability to ramp up operations and manage any debt if credit facilities are extended.