ELMAS CONSULTANCY LTD

Executive Summary

ELMAS CONSULTANCY LTD demonstrates a stable but very modest financial position with positive net assets and sufficient liquidity to cover short-term liabilities. The company’s limited scale and narrow working capital margin suggest credit should be extended cautiously and monitored closely. Overall, the company is creditworthy for small facilities with prudent oversight.

ELMAS CONSULTANCY LTD - Analysis Report

Company Number: 13011577

Analysis Date: 2025-07-20 18:34 UTC

1. Credit Opinion: APPROVE with caution.
   ELMAS CONSULTANCY LTD is a small private limited company with a modest but positive net asset base and consistent working capital surpluses over the last four years. The company’s current liabilities are closely covered by current assets, primarily cash, indicating an ability to meet short-term obligations. However, the overall scale of operations is small, with minimal equity (£305) and limited financial buffer. The single director and sole shareholder has maintained steady control, but the company’s financial profile suggests limited capacity for growth or absorption of shocks. Credit facilities should be granted with limits aligned to the company’s scale and regular monitoring.

2. Financial Strength:
   The company’s balance sheet is positive but minimal. Net assets have increased gradually from £157 in 2021 to £305 in 2024, reflecting small retained profits. Share capital remains nominal at £100. Current assets are predominantly cash (£4,980 in 2024), with no reported fixed assets. Current liabilities stand at £4,675, mainly taxes and social security, and some trade creditors. Net current assets are positive but modest (£305). The company’s financial structure shows no gearing or long-term liabilities, limiting financial risk but also indicating a lack of investment in growth assets.

3. Cash Flow Assessment:
   Cash balances have grown modestly from £2,640 in 2021 to £4,980 in 2024, demonstrating positive liquidity trends. The company maintains a very tight working capital position, with current liabilities nearly equalling current assets each year. This suggests limited working capital flexibility. The absence of fixed assets implies a low capital expenditure profile, which preserves cash but may limit operational scale. The company appears capable of meeting immediate liabilities but might be vulnerable to cash flow disruptions or increased credit demands.

4. Monitoring Points:

• Watch tax and social security creditor balances closely, as they represent the bulk of current liabilities and could affect liquidity if delayed payments occur.
• Monitor cash flow trends and operating profitability to ensure continued capacity to service liabilities given the narrow working capital margin.
• Assess any changes in director/shareholder control or operational strategy that could impact financial stability or risk profile.
• Evaluate any growth in liabilities or capital expenditure that might stretch the company’s limited financial resources.