EMPOWERING SOCIAL WORK LIMITED

Executive Summary

Empowering Social Work Limited is a micro-entity with a small but improving financial position and positive working capital. While credit risk is moderate due to limited operational history and scale, the absence of debt and positive net assets support conditional credit approval. Ongoing financial monitoring and confirmation of cash flow stability are essential to manage risk effectively.

EMPOWERING SOCIAL WORK LIMITED - Analysis Report

Company Number: 14692252

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Empowering Social Work Limited is a newly incorporated micro-entity (since February 2023) operating in social work activities. The company shows a modest but positive net asset base (£1,743 as at Feb 2025) and a small positive net working capital position (£1,992). However, given the very small scale of operations (1 employee), minimal financial history, and low absolute asset values, the company carries some risk typical of startups. Credit approval should be conditional on regular financial monitoring and confirmation of ongoing revenue generation and cash flow stability.

2. Financial Strength:
   The balance sheet reflects a very modest financial base consistent with a micro-entity. Net assets improved from £1 in 2024 to £1,743 in 2025, showing some capital injection or retained earnings. Current assets (~£8.5k) exceed current liabilities (~£6.5k), yielding positive net working capital. There are no long-term liabilities indicated, minimizing solvency risk. The company’s capital structure is equity-based with no apparent gearing, which is positive, but the scale is very limited.

3. Cash Flow Assessment:
   Current assets largely represent cash and short-term receivables given the small size; exact cash balances are not detailed but net current assets are positive, implying sufficient liquidity to meet short-term obligations. The working capital position improved significantly from prior years, indicating better liquidity management or operating cash flow. However, absence of a profit and loss statement means inability to assess operational cash generation or reliance on owner funds.

4. Monitoring Points:

• Confirm ongoing revenue streams and cash inflows to support working capital needs.
• Monitor net current assets and liquidity regularly, given the tight margins.
• Review any changes in liabilities or sudden increases in payables that may stress cash flow.
• Track director/owner financial support and any changes in ownership/control.
• Observe any changes in employee count or cost base that may affect operating expenses.