Company Number: 12723334

Analysis Date: 2025-07-20 15:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fencegate Consulting Limited shows a stable but declining net asset base and working capital in the latest year. The company is a micro-entity engaged in management consultancy, with limited fixed assets and modest current assets. Directors have significant control and appear to support the business financially (noted advances/repayments). However, the notable reduction in net current assets and shareholders’ funds from £21,336 (2023) to £11,784 (2024) signals some financial contraction. Credit approval is conditional upon monitoring future trading performance and cash flow stability to ensure continuing debt servicing ability.

2. Financial Strength:
   The balance sheet reflects a low asset base typical of a micro private limited company. Fixed assets are minimal (£1,469 in 2024) and have decreased slightly from prior year. Current assets have declined significantly from £41,810 (2023) to £25,856 (2024), while current liabilities reduced proportionally from £20,239 to £14,154. The net current assets remain positive at £11,702, indicating sufficient short-term liquidity to cover current liabilities. Shareholders’ funds have reduced almost 45% year on year, but remain positive at £11,784. The company carries no long-term liabilities disclosed, and the capital structure is simple with £100 share capital.

3. Cash Flow Assessment:
   The company maintains positive net working capital, which supports ongoing operations and short-term obligations. However, the sharp decline in current assets and net current assets suggests tighter liquidity. The related party transactions show active director funding, indicating the directors provide financial support as needed. There is no audit, and no profit and loss account filed, so cash flow from operations cannot be precisely determined. Given the micro-entity status, cash flow risk is moderate but manageable if directors continue support and trading remains steady.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to detect liquidity tightening early.
• Monitor changes in net assets and shareholders’ funds for sustained declines.
• Watch for any increase in current liabilities or overdue payables.
• Observe director loan account movements to confirm ongoing financial backing.
• Review any changes in business activity or client base that may impact revenue.
• Ensure timely filing of returns and accounts to avoid compliance risks.