Company Number: 14119922

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ianthine Consulting Ltd shows a significant turnaround in financial position within two years of operation, moving from net liabilities of approximately £1,420 at March 2023 to net assets of £15,625 at March 2024. This indicates improved financial management and operational performance. However, as a young company with limited trading history and relatively modest fixed assets, credit approval should be conditional upon continued monitoring of cash flow and profitability trends. The increase in corporation tax liability suggests the company is generating taxable profits, but attention should be paid to ensure tax obligations do not strain liquidity.

2. Financial Strength:
   The company’s balance sheet as of 31 March 2024 shows total assets less current liabilities of £15,657, all attributable to current assets primarily cash (£62,542) and minimal fixed assets (£126). The significant improvement in net current assets from a deficit of £1,546 in 2023 to a positive £15,531 in 2024 is a positive indicator of working capital management. Shareholders’ funds have improved from negative to positive, reflecting retained earnings accumulation and better equity position. The company remains small in scale with limited tangible assets but maintains a clean balance sheet with no bank overdraft as of latest accounts.

3. Cash Flow Assessment:
   Cash at bank of £62,542 at year end provides a strong liquidity buffer, especially given current liabilities of £47,365. The positive net current asset position (£15,531) suggests the company can meet short-term obligations without strain. However, the significant increase in corporation tax creditor from £17,776 to £45,266 may require careful cash flow planning to avoid liquidity pressure. Debtor balances have sharply reduced to £354 from previous years suggesting either improved collection or lower sales on credit terms. Overall, cash flow appears strong but should be monitored for tax payment timing.

4. Monitoring Points:

• Continued profitability and cash flow generation to support ongoing tax liabilities and working capital needs.
• Corporation tax creditor trend and payment schedule to ensure no liquidity bottlenecks.
• Client receivables and debtor days to verify the sustainability of low debtor balances.
• Management of pension contributions and any future increases in employee headcount or costs.
• Maintenance of positive shareholders’ funds to support future credit requests.