HOW NOW CONSULTING LIMITED

Executive Summary

How Now Consulting Limited is a young but financially sound micro-entity with strong growth in net assets and liquidity. The company’s current financial position and management profile support credit approval for modest facilities. Ongoing monitoring of cash flow and compliance filings is recommended to maintain creditworthiness as the business develops.

HOW NOW CONSULTING LIMITED - Analysis Report

Company Number: NI692418

Analysis Date: 2025-07-20 11:42 UTC

1. Credit Opinion: APPROVE
   How Now Consulting Limited demonstrates a solid financial position for a micro-entity in its early years of operation. The company shows strong growth in net current assets and net assets between 2023 and 2024, indicating an improving financial trajectory. The director, a sole significant controller with a professional background as a lawyer, suggests competent management. Given the absence of any overdue filings, liquidation, or administration concerns, and positive working capital levels, the company appears capable of meeting its short-term obligations and servicing modest credit facilities.

2. Financial Strength:
   The balance sheet as of 31 December 2024 shows net assets of £30,711, up from £4,612 the prior year. This growth is driven primarily by increased current assets (£50,453) relative to current liabilities (£18,805), yielding net current assets of £31,648. Fixed assets are minimal (£463), which is typical for a consulting firm. The company’s shareholders’ funds fully support the net assets, indicating no external long-term debt. Overall, the financial strength is sound with a healthy equity base and no signs of financial distress.

3. Cash Flow Assessment:
   Working capital is robust and has improved significantly year-on-year. The company has a net current asset position of £31,648, providing a comfortable liquidity buffer to cover short-term liabilities. The increase in current assets, especially cash or equivalents, suggests good cash generation or capital injection. Given the small scale and micro-entity status, cash flow volatility is likely low, and the current liquidity position indicates the company can meet operational and credit commitments without strain.

4. Monitoring Points:

• Continued monitoring of cash flow and working capital to ensure liquidity remains strong as the company grows.
• Watch for any material changes in current liabilities or delayed payments that could stress short-term liquidity.
• Verify that the company maintains timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Observe any changes in ownership or director status that could impact governance or credit risk.
• Given the company’s growth, assess future capital needs and repayment capacity if credit facilities are expanded.