Company Number: 13069417

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Flourish Accounting Ltd demonstrates improving financial health with increasing net assets and positive working capital in the latest year, indicating enhanced ability to meet short-term obligations. However, the company is micro-sized with modest fixed assets and relatively low equity, reflecting limited financial buffer. The company has no history of liquidation or overdue filings, and management appears stable with a majority shareholder actively involved. Credit approval is recommended with monitoring conditions given the small scale and limited historical depth.

2. Financial Strength:
   The balance sheet shows a steady recovery from initial losses in 2020, moving from negative net assets (-£7,545) to positive net assets of £13,263 by 2023. Fixed assets increased from £955 to £11,816 over the period, suggesting some investment in long-term resources. Shareholders’ funds have grown accordingly. The company operates as a micro entity with a small capital base (£100 share capital), which limits its financial resilience to shocks but is typical for the sector and size.

3. Cash Flow Assessment:
   Current assets rose to £23,033 in 2023, with current liabilities slightly reduced to £19,159, resulting in positive net current assets of £3,874. This indicates improved liquidity and working capital management compared to prior years, where net current assets were negative. The accruals and deferred income have increased slightly but remain manageable. The company’s ability to generate positive working capital supports short-term debt servicing capacity.

4. Monitoring Points:

• Continued growth in net assets and working capital to strengthen financial resilience.
• Profitability trends and cash flow statements (not provided) to confirm operational cash generation.
• Timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Any changes in ownership or director appointments, especially given significant control by two directors/shareholders.
• Sector risks affecting accounting service demand, especially in economic downturns.