Company Number: 13740024

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: APPROVE with monitoring. Hunter Barker Associates Ltd demonstrates a solid improvement in financial position from prior years with increased net assets and strong working capital. The company is small, privately owned, and engaged in management consultancy, which typically has low fixed costs and moderate risks. While the company is relatively new (incorporated 2021) and filings are up to date, the growing cash balance and positive net assets support their ability to service debt. However, the relatively small scale and concentration of ownership warrant ongoing monitoring of cash flow and client concentration.

2. Financial Strength: The balance sheet at 30 November 2024 shows net assets of £39,377, a significant increase from £5,944 in 2023 and a turnaround from a net liability position in 2021. Fixed assets are minimal (£128), consistent with the consultancy business model. Current assets stand at £59,592 with a healthy cash balance of £43,819, which is a major improvement over £1,305 previously. Current liabilities are £20,319, mainly corporation tax (£16,903) and directors’ loans (£2,166). Net current assets (working capital) is strong at £39,273, indicating liquidity is sufficient to cover short-term obligations comfortably.

3. Cash Flow Assessment: The cash position has improved markedly over the last year, suggesting good operational cash generation or capital injection. The company holds a cash balance over twice its current liabilities, providing a solid liquidity buffer. Debtors are stable at around £7,850, which should be monitored to ensure timely collection. The directors’ loan account balance has decreased from £6,992 to £2,166, indicating some repayment or restructuring of internal financing. Overall, liquidity and working capital ratios are strong for the size and nature of the business.

4. Monitoring Points:

• Corporation tax liability has increased significantly to £16,903; confirm that payment terms or installment arrangements are manageable.
• Maintain close watch on debtor aging and cash conversion cycle to avoid liquidity strain.
• Track profitability trends and cash flows in upcoming accounts to ensure continued growth and debt servicing.
• Assess any concentration risk from clients or reliance on key directors given ownership structure.
• Monitor working capital management and any changes in directors’ loan accounts for potential financial stress signals.