Company Number: SC684184

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ferness Consulting Ltd is a micro private limited company with modest financial scale and limited operational history (incorporated late 2020). The company shows positive net current assets and shareholders’ funds for the latest year ending 31 March 2024, indicating a basic level of financial stability. However, turnover data is only available for two years and shows a declining trend (£18.5k in 2021 to £15.8k in 2023), with no turnover reported in the most recent accounts period. The company has no employees, suggesting a very lean operation, possibly relying on consultancy by directors. Given the low scale of operations and modest asset base, credit facilities should be limited and carefully monitored. Approval is recommended with conditions on credit limits and possibly requiring personal guarantees or security.

2. Financial Strength

• Fixed assets increased slightly from £453 to £1,506 year on year, indicating some capital investment though still very low in absolute terms.
• Current assets declined significantly from £24.1k in 2023 to £9.4k in 2024, mainly due to reduction in receivables or cash.
• Current liabilities also fell sharply from £20.5k to £6.7k, improving net working capital to £2,675 from £3,607.
• Shareholders’ funds increased slightly from £3,100 to £3,221, reflecting retained earnings or small capital injections.
• Overall, the balance sheet is solvent with net assets of £4,181, but the absolute magnitude is small, reflecting a micro business scale.

3. Cash Flow Assessment

• The company maintains positive net current assets, indicating sufficient short-term liquidity to meet immediate obligations.
• The reduction in current assets and liabilities suggests tighter working capital management or lower business volumes.
• No employees and low fixed asset levels imply low operating overheads, which may help preserve cash.
• However, the absence of turnover in the latest filing period raises concerns about ongoing cash generation capability.
• Cash flow projections and bank statements should be reviewed for assurance of ongoing liquidity before extending credit.

4. Monitoring Points

• Turnover and revenue trends: Watch for recovery or further decline in sales to assess business viability.
• Cash balances and debtor aging: Monitor liquidity closely to ensure timely debt servicing.
• Directors’ involvement and any changes to PSC or management structure: Stability here will support creditworthiness.
• Timely filing of accounts and confirmation statements: Maintain compliance to avoid regulatory risks.
• Potential concentration risk: The company has no employees and limited capital, so dependency on key individuals is high.