Company Number: NI695301

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Eagry Consulting Limited is a newly incorporated IT consultancy (since March 2023) showing a solid opening year with positive net assets and a reasonable working capital surplus. The company’s cash position (£49,260) comfortably covers current liabilities (£33,105), indicating short-term liquidity strength. However, the company's limited trading history and small scale warrant cautious credit exposure with monitoring. Approval is recommended with conditions such as periodic financial updates and limits on credit facilities until a longer trading track record is established.

2. Financial Strength:
   The balance sheet as of 31 March 2024 shows net assets of £16,613, composed mainly of cash and minimal fixed assets (£458). Share capital is nominal (£4), but retained earnings/profit and loss reserves account for the majority of equity (£16,609), reflecting initial profitability or capital contributions. Current liabilities include significant taxation and social security liabilities (£30,988), which should be monitored to ensure timely settlement. Overall, the financial structure is sound for a start-up, with no long-term debt reported.

3. Cash Flow Assessment:
   The company's cash of £49,260 exceeds current liabilities, providing a comfortable liquidity buffer and positive net current assets (£16,155). This suggests good short-term cash management and ability to meet obligations as they fall due. However, the large tax and social security creditor balance indicates potential upcoming cash outflows; management must manage these carefully to avoid liquidity strain. Absence of detailed cash flow statements limits deeper cash flow cycle analysis.

4. Monitoring Points:

• Regular monitoring of cash balances and timely settlement of tax/social security liabilities.
• Review future profitability and cash flow from operations as the company builds trading history.
• Watch for any increase in current liabilities that could pressure liquidity.
• Keep track of dividend policy, especially given the £57,000 interim dividend paid in the first year, to ensure it does not impair working capital.
• Directors’ ongoing financial stewardship and compliance with filing deadlines.