Company Number: 14173035

Analysis Date: 2025-07-20 18:27 UTC

1. Credit Opinion: APPROVE with conditions.
   Gibbon Consulting Limited demonstrates modest but improving net current assets and net asset position over its first two full years of operation, indicating a positive trajectory in financial stability. Despite limited scale and operating with a single employee, the company has maintained positive working capital and equity, which supports its ability to meet short-term obligations. However, as a micro-entity with very limited financial history and small absolute asset base, credit exposure should be limited and monitored closely.

2. Financial Strength:
   The balance sheet shows total net assets rising from £1,808 as of June 2023 to £3,046 as of June 2024. Current assets declined from £11,249 to £7,823, but current liabilities also decreased markedly from £9,441 to £4,777. This improved net current asset ratio (from £1,808 to £3,046) reflects better liquidity and reduced short-term indebtedness. Equity equals net assets, reflecting a lack of long-term liabilities. The company’s micro-entity status means minimal fixed assets, and its financial profile is typical for a very small consultancy.

3. Cash Flow Assessment:
   Current assets consist primarily of cash and receivables (debtor details not disclosed), supporting liquidity. The net current assets position is positive and improving, indicating the company should be able to cover its short-term liabilities without strain. The reduction in current liabilities by nearly 50% year-on-year suggests improved creditor management or debt repayment. With only one employee (the director), overhead costs are likely low, reducing cash flow pressure. Absence of audit and limited disclosures mean cash flow details are not fully transparent, so there is some inherent risk in extrapolating beyond balance sheet figures.

4. Monitoring Points:

• Maintain positive net current assets and monitor any material changes in creditor terms or debtor collections.
• Watch for any significant increase in liabilities or operating expenses that might stress liquidity.
• Monitor revenue growth and profitability trends in future filings to confirm the sustainability of cash flows.
• Given the company’s small scale, ensure compliance filings (accounts, confirmation statements) remain timely.
• Monitor any changes in ownership, director conduct, or business model that could impact credit risk.