Company Number: 15612014

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: APPROVE with caution.
   FGS Consultants Ltd is a newly incorporated management consultancy with a small but positive net asset position and no overdue filings. The company shows modest working capital and shareholders' funds consistent with a start-up phase. Given the directors’ equity injections and repayment of director loans, initial financial stewardship appears sound. However, limited trading history and small scale pose some risk, so credit approval should be contingent on continued trading performance and receipt of updated financials.

2. Financial Strength:
   The balance sheet at 30 April 2025 shows net assets of £4,012, primarily arising from net current assets after accounting for creditors. The company holds £12,965 in current assets, with £8,681 in cash and £4,284 in debtors. Current liabilities of £8,953 are mainly taxation and social security costs (£6,763) and other creditors. There are no long-term liabilities reported. Shareholders’ funds are £4,012, supported by a nominal share capital of £2 and retained earnings of £4,010. The repayment of director loans (£29,105) during the period has reduced financial leverage, improving the net asset position.

3. Cash Flow Assessment:
   Cash balance is positive at £8,681, which supports liquidity needs. The company maintains positive net current assets of £4,012, indicating sufficient short-term resources to meet liabilities due within one year. However, taxation and social security liabilities are substantial relative to cash, so cash flow management will be critical. The repayment of director loans suggests prior reliance on internal funding, now resolved. Ongoing operating cash flow generation will be important to sustain working capital adequacy.

4. Monitoring Points:

• Track turnover growth and profitability to ensure sustainable cash flow generation.
• Monitor tax and social security liabilities to avoid accrual build-up and cash strain.
• Review subsequent financial statements for improvement or deterioration in net assets and liquidity.
• Verify directors maintain prudent financial controls and avoid over-reliance on short-term credit.
• Assess any changes in company size or business activities that may affect risk profile.