Company Number: 13803204

Analysis Date: 2025-07-29 12:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   IJY Consultancy Limited is a micro-sized management consultancy firm incorporated recently in December 2021. The company shows positive net assets and working capital, indicating an ability to meet short-term obligations. However, there is a significant decline in current assets and net assets from 2022 to 2023, suggesting reduced liquidity or business contraction. There is no audit requirement due to company size, which limits detailed insight into financial robustness. Credit approval is conditional on monitoring improving cash flow and stabilization of net assets.

2. Financial Strength:
   The balance sheet reveals fixed assets of £1,599 (down slightly from £1,999 in prior years), current assets dropping sharply from £210,454 in 2022 to £96,286 in 2023, and current liabilities reducing from £68,571 to £41,599 over the same period. Net current assets remain positive at £54,687, but this is a marked decrease from £141,883 in 2022. Net assets have declined from £143,882 to £56,286, reflecting a drawdown of reserves or operational losses. Shareholders’ funds mirror net assets, indicating no external equity injections. Overall, the balance sheet is solvent but shows weakening financial strength.

3. Cash Flow Assessment:
   Current assets less current liabilities (working capital) is positive but diminished, which raises concerns about short-term liquidity. The significant reduction in current assets may point to reduced cash balances or receivables, possibly from lower revenue or delayed payments. The company employs two people on average, suggesting modest overheads. Without cash flow statements, assumptions must be cautious, but the trend implies tighter liquidity and potentially constrained operating cash flow.

4. Monitoring Points:

• Track quarterly updates on cash balances and receivables aging to ensure liquidity does not deteriorate further.
• Monitor net asset fluctuations and profitability to detect any emerging solvency issues.
• Review any changes in directors or ownership that might impact governance or financial strategy.
• Watch for timely filing of accounts and confirmation statements to maintain transparency and compliance.
• Assess client concentration risk and contract pipeline to gauge future revenue stability.