Company Number: NI670837

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fusion-NI Ltd is a micro-entity operating in management consultancy with modest but improving financial metrics. The company has shown growth in net assets and net current assets over the past two years, indicating strengthening financial stability. However, net assets remain low (£2,643 at 2023 year-end), reflecting limited equity buffer. Being a private company limited by guarantee without share capital suggests limited capital resources. The absence of audit and limited financial disclosures restrict deeper insight into profitability and cash flow. Credit approval is recommended with conditions such as maintaining or improving liquidity and net asset position, and prompt monitoring of financial updates.

2. Financial Strength:
   The company’s balance sheet shows a steady increase in net current assets from £6,988 in 2022 to £27,783 in 2023, primarily driven by increased current assets and prepayments (£18,000) offset by low short-term creditors (£631). Net assets rose from £488 to £2,643 over the same period, reflecting a positive trajectory though still modest in absolute terms. The company’s micro classification and guarantee structure indicate low financial leverage and limited capital base. Overall, the balance sheet is stable but thin, with limited equity cushions for unexpected shocks.

3. Cash Flow Assessment:
   Current assets grew from £8,855 to £10,414, but a significant portion is tied up in prepayments and accrued income (£18,000), which may delay cash realizations. Creditors due within one year are low at £631, suggesting manageable short-term obligations. Net current assets are positive and improving, indicating working capital adequacy. However, the absence of detailed income statement and cash flow data limits full assessment of operational cash generation. The company’s liquidity appears sufficient for current obligations but should be monitored for timely conversion of accrued income into cash.

4. Monitoring Points:

• Maintain or increase net asset base to build equity buffer.
• Monitor accruals and prepayments to ensure timely cash inflows.
• Review future accounts filings for profitability trends and cash flow statements.
• Track payment patterns to suppliers and creditors to detect any stress.
• Observe any changes in director appointments or company status given the private limited guarantee structure.