DOHERTY CONSULTING SERVICES LTD

Executive Summary

Doherty Consulting Services Ltd exhibits solid financial health with strong net assets and positive working capital, supporting its ability to service credit facilities. The company shows growth in fixed assets and equity, managed by an experienced director with no adverse records. Continued monitoring of liquidity and director loan balances is recommended to maintain creditworthiness.

DOHERTY CONSULTING SERVICES LTD - Analysis Report

Company Number: NI671639

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: APPROVE
   Doherty Consulting Services Ltd demonstrates sound financial stability with improving net assets and a strong equity base. The company maintains positive working capital and modest liabilities, indicating a solid ability to meet short-term obligations. The director’s longstanding involvement and absence of adverse records suggest competent management. Though a micro entity with a single employee, the financial trajectory shows growth in net assets and fixed assets, supporting credit approval for typical SME lending facilities.

2. Financial Strength:
   The balance sheet as of 31 March 2024 shows net assets of £243,979, up from £172,523 the prior year, reflecting a 41% increase. Fixed assets increased significantly to £138,557, indicating investment in long-term resources. Current assets stand at £164,100 against current liabilities of £54,890, resulting in a healthy net current asset (working capital) position of £109,210. Shareholders’ funds equal net assets, evidencing no external equity dilution and a clean capital structure. Long-term liabilities are minimal at £3,788.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a comfortable margin, signifying sufficient liquidity to cover short-term debts. The director’s loan account balance of approximately £85,800 is unsecured and payable on demand, which may provide some informal flexibility in cash flow management. However, the reduction in current assets year-over-year (from £192,352 to £164,100) warrants monitoring to ensure liquidity remains adequate. Overall, the company appears capable of servicing debt from operating cash flows supported by strong working capital.

4. Monitoring Points:

• Keep track of current asset levels and any fluctuations in debtor or cash balances that could impact liquidity.
• Monitor fixed asset investments to ensure asset growth translates into operational profitability.
• Watch director’s loan account balances and repayment terms to assess potential impact on financial flexibility.
• Review future filings for any changes in liabilities, particularly if long-term debt is introduced.
• Continue oversight of business performance given the micro entity status and reliance on a single employee/director.