Company Number: 12763033

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Great Scott! Management Limited is an active private limited company operating in management consultancy (SIC 70229). The company shows a small but positive net asset base and current positive working capital as of the latest accounts (2024). However, the net assets and working capital have materially declined from the prior year, indicating some financial deterioration. The company has relatively low cash reserves and significant current liabilities, particularly in taxation and social security. Related party debt (owed by a director) represents a portion of current assets, which may present some collection risk. Given these factors, credit should be extended cautiously with conditions such as regular monitoring of liquidity and confirmation of receivables collection.

2. Financial Strength: The balance sheet indicates net assets of £9,904 at 28 February 2024, down from £22,826 the prior year, reflecting a weakening equity position. Fixed assets (plant and machinery) are modest (£6,328 net book value). Current assets total £86,983, mainly debtors (£76,366) and cash (£10,617). Current liabilities stand at £81,825, primarily taxation and social security liabilities (£51,862), which is a relatively high proportion of short-term obligations. The company’s share capital is minimal (£2). Overall, this points to a small business with limited financial buffer and a moderate risk of liquidity strain, especially if receivables or director loans are not promptly realised.

3. Cash Flow Assessment: The company holds £10,617 in cash, which is low relative to current liabilities. The working capital is positive (£5,158), but significantly reduced from the previous year (£16,048). Debtors include £18,866 owed by a director, which may not be immediately liquid. Tax and social security payable have decreased but remain substantial and could pressure cash flow. The absence of an income statement limits direct cash flow analysis, but the decline in net assets and working capital suggests potential cash flow constraints. The company employs only one staff member, helping to contain operating costs.

4. Monitoring Points:

• Track cash balances and liquidity trends closely to ensure timely payment of tax liabilities.
• Monitor collection of debtors, including the director loan, to confirm working capital adequacy.
• Watch for any further deterioration in net assets or increase in current liabilities.
• Review subsequent filings and confirmation statements to confirm continued operational status.
• Assess any changes in director conduct or control that may impact credit risk.
• Verify that the company maintains compliance with HMRC obligations to avoid enforcement actions.