ILH CONSULTANCY LTD

Executive Summary

ILH Consultancy Ltd shows a positive improvement in financial strength with increased net assets and reduced liabilities, supporting its ability to meet short-term obligations. The company’s small scale and current liquidity position indicate low credit risk at this stage. Continued monitoring of working capital and business growth will be essential to maintain creditworthiness.

ILH CONSULTANCY LTD - Analysis Report

Company Number: 14356678

Analysis Date: 2025-07-29 15:53 UTC

1. Credit Opinion: APPROVE
   ILH Consultancy Ltd demonstrates improving financial stability with positive net current assets and strengthened shareholders' funds in the latest year. The company is active, with timely filings, and is managed by a single director who holds full control. There is no indication of financial distress or poor governance. Given its micro-entity status and manageable scale, the credit risk is low to moderate. Credit approval is recommended with standard monitoring.

2. Financial Strength:
   The balance sheet shows a positive trajectory. Fixed assets remain steady at approximately £13,200. Current assets decreased slightly from £22,743 to £20,169, but current liabilities significantly reduced from £24,510 to £10,854, resulting in net current assets improving from negative £1,767 to positive £9,315. Shareholders’ funds almost doubled to £22,515, indicating retained profitability or capital injection. Overall, the company’s net assets have nearly doubled year on year, reflecting an enhanced financial footing.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and receivables, which provide adequate liquidity to cover short-term obligations evidenced by the improved net current assets position. The reduction in current liabilities suggests better working capital management or debt repayment. With only one employee, operating expenses are likely low, supporting cash flow sufficiency. However, as a micro-entity with limited scale, cash flows should be monitored for seasonality or one-off impacts.

4. Monitoring Points:

• Maintain vigilance on current liabilities and ensure they remain well covered by current assets to avoid liquidity strain.
• Monitor turnover and profitability trends in future accounts to confirm sustainable earnings.
• Watch for any director changes or ownership shifts that could affect governance.
• Review cash flow statements when available to verify ongoing operational cash generation.
• Given the company’s young age (incorporated in 2022), track its ability to build a stable customer base and revenue growth.