FLOW STRATEGIES LTD

Executive Summary

FLOW STRATEGIES LTD is a newly established micro-entity showing positive financial progression with an improving balance sheet and liquidity. The company’s financial position is currently sound with minimal liabilities and adequate working capital. Credit approval is recommended with ongoing monitoring to track growth, cash flow sustainability, and governance stability as the business develops.

FLOW STRATEGIES LTD - Analysis Report

Company Number: 15207098

Analysis Date: 2025-07-29 21:15 UTC

1. Credit Opinion: APPROVE with monitoring.
   FLOW STRATEGIES LTD is an active private limited company operating in management consultancy. Despite being a micro-entity with minimal financial history (incorporated October 2023), the financial data shows a positive trend in net assets and working capital, indicating improving financial health. The company is wholly controlled by a single director with full voting rights, suggesting clear governance but also some concentration risk. Given the early stage of the company, credit approval should be conditional on ongoing monitoring of financial performance and cash flows.

2. Financial Strength:
   The balance sheet as of 31 March 2025 shows total net assets of £5,882, up from £3,415 in the prior period. Fixed assets are minimal (£513) which is typical for consultancy businesses. Current assets (£14,858) comfortably exceed current liabilities (£10,015), resulting in positive net current assets of £5,368, demonstrating adequate short-term financial strength and working capital. There are no long-term liabilities, indicating a clean balance sheet with limited leverage. The increase in net assets and working capital from previous periods suggests growth and prudent financial management.

3. Cash Flow Assessment:
   The company shows a positive liquidity position with net current assets above £5k, indicating sufficient working capital to meet short-term obligations. The absence of creditors beyond one year and provisions implies no significant deferred financial burdens. However, given the micro size and single employee, the cash flow base is likely limited and dependent on ongoing client engagements. Close attention should be paid to cash receipts and payment cycles to ensure sustainable liquidity.

4. Monitoring Points:

• Track revenue growth and profitability as the company matures to ensure continued improvement in equity and cash flow.
• Monitor debtor days and creditor turnover to confirm efficient working capital management.
• Observe any changes in director control or company structure that might affect governance or risk profile.
• Keep watch on timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Assess any emerging liabilities or off-balance sheet commitments that could impact financial stability.