GROWING CONSULTING LTD

Executive Summary

Growing Consulting Ltd demonstrates improving financial stability with strengthened equity, reduced current liabilities, and enhanced liquidity. The company’s positive working capital and cash position support debt servicing capability, but its reliance on intangible assets and young operating history require ongoing monitoring. Approval is recommended with vigilance on cash flow and profitability trends.

GROWING CONSULTING LTD - Analysis Report

Company Number: 13929919

Analysis Date: 2025-07-19 12:45 UTC

1. Credit Opinion: APPROVE with conditions
   Growing Consulting Ltd shows improving financial health and liquidity, with no overdue filings and a sole director who holds full control. The company’s net current assets recovered strongly in the most recent year, indicating improved working capital management. However, as a relatively young small private limited company with intangible assets comprising a significant portion of total assets, caution is advised. Approval is recommended subject to ongoing monitoring of cash flow and profitability trends.

2. Financial Strength:
   The balance sheet shows a positive trajectory. Shareholders’ funds increased from £2,750 in 2024 to £4,458 in 2025, reflecting retained earnings growth and strengthening equity. Current liabilities decreased substantially from £1,698 to £248, reducing short-term financial pressure. Intangible assets (patents/licenses) remain significant at £3,683, indicating investment in intellectual property but limited tangible asset coverage. The company maintains a net current asset position of £775, a marked improvement from a £1,137 deficit the prior year.

3. Cash Flow Assessment:
   Cash balances more than doubled from £361 to £839 in the latest year, supporting liquidity. Debtors remain low and stable, reducing risk of cash conversion delays. Current liabilities dropped sharply, easing working capital demands. Overall, cash flow appears sufficient to cover short-term obligations, though the relatively low absolute cash figure means the company should maintain tight control on receivables and payables.

4. Monitoring Points:

• Continued improvement in profitability and generation of positive cash flow from operations.
• Management of intangible asset amortisation and ensuring their value supports future earnings.
• Monitoring tax and social security creditor balances to avoid cash flow strain.
• Maintaining or growing net current assets and shareholders’ funds to support potential credit expansions.
• Stability and conduct of director given single-person control.