Company Number: 14094058

Analysis Date: 2025-07-20 16:29 UTC

1. Credit Opinion: APPROVE with caution. Honest ESG Limited is a very young private limited company (incorporated May 2022) with a niche management consultancy focus on ESG. It shows a positive net asset position (£31,823 as of Aug 2024) and current liquidity, but the business is currently a single-director operation with limited operating history and scale. The absence of audit and minimal employees suggests low complexity but limited financial track record. Approval is reasonable for modest credit facilities, provided exposure is controlled and monitored closely.

2. Financial Strength: The balance sheet shows net assets of £31,823 driven by accumulated profits, tangible fixed assets of £6,739, and positive working capital of £25,084. The company’s equity base has improved from £1 at Feb 2023 to over £31k at Aug 2024, indicating initial profitable operations or capital injection. The business holds minimal debt (current liabilities £13,904) which are manageable given current assets of £38,988 (cash £22,763). The share capital is nominal (£1), so the financial strength mainly derives from retained earnings and assets.

3. Cash Flow Assessment: Cash on hand is £22,763, a strong position relative to current liabilities of £13,904, supporting liquidity and ability to meet short-term obligations. Debtors of £16,225 indicate some receivables exposure but are not excessive. Net current assets of £25,084 imply good working capital management. The company is small, with only 1 employee (the director), so fixed overheads are likely low, aiding cash flow stability. However, being a start-up, cash flow consistency over time remains to be proven.

4. Monitoring Points:

• Track monthly cash flow and receivables aging to ensure timely collections.
• Monitor revenue growth trends and profitability to confirm sustainable earnings.
• Watch current liabilities levels and any increase in debt or creditor days.
• Observe any changes in director or ownership structure, given single-person control.
• Review annual accounts for continued positive net assets and working capital.