Company Number: 14155259

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: APPROVE
   Felon Ltd exhibits a sound financial position with positive net current assets and growing shareholders' funds. The company has no overdue filings, indicating good compliance and management discipline. As a relatively new private limited company incorporated in 2022, it shows prudent cash management with a strong liquidity buffer relative to current liabilities. The absence of audit requirements and small company exemption is consistent with its size and does not raise concerns. Overall, the company appears capable of servicing short-term obligations and maintaining operational continuity.

2. Financial Strength:
   The balance sheet shows increasing net current assets, from £4,110 in FY2023 to £10,767 in FY2024, driven primarily by an increase in cash balances (£5,974 to £13,217). Current liabilities remain low and stable (£1,864 to £2,450), indicating limited short-term debt exposure. Shareholders' funds have grown significantly, reflecting retained earnings accumulation and capital stability. The company operates within the micro/small category thresholds, maintaining a conservative financial structure with no long-term liabilities reported.

3. Cash Flow Assessment:
   Cash on hand more than doubled year-on-year, providing a robust liquidity position. Net current assets are positive and growing, supporting comfortable working capital levels. The company’s tax and social security creditors are modest and well covered by cash reserves. There is no indication of liquidity stress or reliance on external short-term borrowing. The working capital cycle appears well managed for a small service-oriented business.

4. Monitoring Points:

• Continued growth in retained earnings and cash balances to maintain liquidity.
• Monitoring any increase in creditors or liabilities that could affect short-term solvency.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.
• Watch for any changes in director or management that could impact governance.
• Track turnover and profitability data when available to assess operational performance beyond balance sheet strength.