IN MOTION CONSULTING LTD

Executive Summary

In Motion Consulting Ltd has demonstrated a positive shift from negative to positive net assets within two years, indicating early-stage financial recovery. However, a small working capital deficit and limited equity base warrant cautious credit exposure with conditions focusing on liquidity management. Ongoing monitoring of cash flow and profitability will be essential to support future credit extensions.

IN MOTION CONSULTING LTD - Analysis Report

Company Number: 14249896

Analysis Date: 2025-07-29 21:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   In Motion Consulting Ltd has shown a marked improvement in its financial position over its first two full years of operation, moving from negative net assets of £12,343 in 2023 to positive net assets of £2,169 in 2024. However, the company still reports a small negative working capital position (£429 deficit) as of the latest year-end, indicating some short-term liquidity pressure. The director is the sole shareholder and active manager, which suggests decision-making is concentrated but consistent. Given the company’s early stage and improving financials, credit can be cautiously extended with conditions such as monitoring cash flow closely and limiting exposure until further stability is demonstrated.

2. Financial Strength:
   The company’s balance sheet at 31 July 2024 reports fixed assets of £2,598 and current assets of £17,870, including cash of £14,790, against current liabilities of £18,299. This results in a marginally negative net current asset position of £429. The positive turnaround from prior years’ net liabilities to net assets of £2,169 is a good sign, but the small equity base and continued working capital deficit reveal limited financial buffer. The small asset base and low capitalisation imply moderate financial strength appropriate for a micro/small business.

3. Cash Flow Assessment:
   Cash on hand nearly doubled from £8,834 to £14,790 year-on-year, reflecting improved liquidity management. Despite this, current liabilities slightly decreased but remain high relative to current assets, causing a negative working capital position. The company’s reliance on short-term liabilities exceeding current assets indicates potential liquidity risk if cash inflows slow. The business should maintain focus on converting receivables promptly and managing payables effectively to avoid cash flow strain.

4. Monitoring Points:

• Working capital and liquidity ratios: track to ensure current liabilities do not exceed current assets persistently.
• Cash conversion cycle: monitor debtor and creditor days to improve cash flow predictability.
• Profitability trends: since income statement details are not provided, confirm that trading results support balance sheet improvements.
• Director’s stewardship: remain alert to any changes in management or control that could impact governance or financial policies.
• Filing compliance: continue to ensure timely submission of accounts and confirmation statements to avoid regulatory issues.