Company Number: 12443575

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: APPROVE with conditions
   Entheos Limited demonstrates a solid micro-entity financial profile with positive net assets and working capital, indicating capability to meet short-term liabilities. The company has shown stable financial health over recent years with slight asset and equity fluctuations but no signs of distress. However, as a small consultancy business with limited fixed assets and modest scale, credit approval should be conditional on continued monitoring of receivables and timely payment performance to mitigate risks inherent in intellectual property consultancy sectors.

2. Financial Strength:
   The balance sheet shows net assets of £79,211 as of 30 April 2024, down slightly from £84,752 the prior year, reflecting a minor reduction in equity but still maintaining a strong capital base relative to company size. Fixed assets remain steady at approximately £58k, while net current assets stand at £53,936, supported by current assets of £70,046 against current liabilities of £16,110. Long-term liabilities total £33,188, suggesting some longer-term creditor arrangements but manageable relative to asset base. Shareholders’ funds equal net assets, indicating no external equity dilution.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash and receivables, providing adequate liquidity for operational needs. The company maintains a healthy net working capital position (£53,936), which should cover short-term obligations comfortably. There is no explicit cash flow statement provided, but stable net current assets and relatively low current liabilities imply sufficient short-term liquidity. The average number of employees is small (4), keeping payroll and overhead fixed costs manageable.

4. Monitoring Points:

• Track net asset and equity trends to ensure no erosion of capital base.
• Monitor debtor days and cash conversion cycles to avoid liquidity squeezes.
• Watch long-term liability levels to confirm debt servicing capacity remains adequate.
• Review payment performance and any overdue creditor balances regularly.
• Assess impact of market conditions on intellectual property consultancy demand and client payment reliability.