Company Number: 13543172

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Heathside Accountancy Limited is a micro private limited company with a short operating history since incorporation in 2021. The company shows a positive net asset position as of 31 March 2025 (£4,381), though this has decreased significantly from the prior year (£12,451). Current assets continue to exceed current liabilities, providing adequate short-term liquidity. However, the reduction in net assets and provisions for liabilities increasing to £5,527 suggest some financial strain or upcoming obligations. The single director and shareholder, Mr Richard Casali, who is also the accountant by profession, indicates strong management oversight but limited diversification of control. The company’s ability to service debt looks adequate currently but with limited financial buffer and some volatility, credit facilities should be extended with prudent limits and monitoring.

2. Financial Strength:
   The balance sheet reflects a modest but positive net asset base at £4,381 with fixed assets of £1,104 and net current assets of £8,804 as of 2025 year-end. The company’s provisions for liabilities have grown from £3,953 in 2024 to £5,527 in 2025, which materially reduces net assets and suggests contingencies or potential obligations that require attention. The drop in current assets from £18,869 to £8,952 year-on-year indicates a reduction in working capital, which may reflect operational or collection challenges. Overall, the balance sheet strength is limited but not weak, typical for a micro-sized business, with a need for cautious financial management.

3. Cash Flow Assessment:
   Current liabilities remain low at £148, well covered by current assets, supporting good liquidity. The company’s working capital position remains positive and sufficient to meet short-term obligations. However, the substantial reduction in current assets year over year warrants close scrutiny of cash flow generation and debtor management. The absence of an audit and limited disclosure means cash flow statements are not available, so ongoing assessment of cash conversion cycles and expense control is critical.

4. Monitoring Points:

• Track net asset movements and provisions for liabilities to understand increasing obligations.
• Monitor cash flow and liquidity closely given the drop in current assets.
• Observe debtor collection periods and any changes in credit risk exposure.
• Watch for any changes in director or ownership that could impact governance.
• Ensure timely filing of accounts and confirmation statements to maintain compliance.