Company Number: 14817906

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: APPROVE
   Featherstone Accounting Ltd is a recently incorporated micro-entity operating in tax consultancy and accounting. The company exhibits a positive net asset position and strong net current assets, indicating a healthy short-term liquidity profile. With no overdue filings and a clear ownership and management structure, the company shows sound financial stewardship. Given the limited operating history of just over one year, credit should be extended cautiously but is justifiable based on the current financial standing.

2. Financial Strength:
   The balance sheet at 30 April 2024 shows fixed assets of £823 and current assets of £27,054 against current liabilities of £7,812, resulting in net current assets of £22,242. After accounting for accruals and deferred income of £12,122, net assets stand at £10,943, fully represented by shareholders’ funds. The micro-entity classification and modest capital base are consistent with a start-up stage company. No long-term liabilities are reported, which reduces financial risk from leverage.

3. Cash Flow Assessment:
   Strong net current assets indicate adequate working capital to meet short-term obligations. Current liabilities are well covered by current assets, implying good liquidity. The presence of prepayments and accrued income (£3,000) suggests some upfront payments or income recognition timing effects. As a micro-entity with only one employee, operating costs are likely low, supporting manageable cash flow needs. However, cash flow projections should be reviewed periodically given limited trading history.

4. Monitoring Points:

• Profitability and revenue growth trends as the company matures beyond the first year.
• Timely filing of subsequent accounts and confirmation statements to maintain compliance.
• Changes in ownership/control or director appointments that could impact governance.
• Working capital fluctuations, particularly if client payment terms or expenses increase.
• Any increase in liabilities or debt which may affect financial leverage and risk profile.