ISLA E CONSULTING LTD

Executive Summary

Isla E Consulting Ltd exhibits a stable financial position with positive equity and strong working capital, though recent asset reductions suggest cautious credit exposure. The company’s micro size and director-managed structure support limited but manageable credit risk. Conditional approval with monitoring of liquidity and asset trends is advised.

ISLA E CONSULTING LTD - Analysis Report

Company Number: 13279916

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: APPROVE with caution.

Isla E Consulting Ltd is a micro-entity operating in IT consultancy with a clean status and no overdue filings. The company demonstrates positive net assets and net current assets, indicating a sound balance sheet. However, the decline in net assets from £36,982 (2023) to £28,757 (2024) and reduction in fixed and current assets suggests a contraction in financial resources. Given the company's small scale (single employee, director-managed) and lack of audit, the credit exposure should be limited. The director's ongoing involvement and no red flags on conduct support basic management quality. Approval is recommended for modest credit limits with monitoring.

2. Financial Strength:

The company’s balance sheet shows total net assets of £28,757 as of 31 March 2024, down from £36,982 the previous year. Fixed assets decreased from £20,646 to £15,181, and current assets fell from £20,628 to £13,897. Despite these declines, net current assets remain strong at £13,820, significantly exceeding current liabilities of £627, indicating good short-term financial stability. Share capital is nominal at £100, typical for micro companies. Overall, the company maintains positive equity and a conservative liability position but is showing signs of asset contraction which may impact financial resilience.

3. Cash Flow Assessment:

Current liabilities are minimal (£627), and current assets (£13,897) provide ample working capital (£13,820 net current assets). This suggests the company should comfortably meet short-term obligations. However, the reduction in current assets from the previous year may indicate lower cash reserves or receivables, warranting close attention to liquidity trends. The absence of detailed cash flow statements limits deeper assessment, but the working capital position is currently sound for ongoing operations.

4. Monitoring Points:

• Continued monitoring of net assets and working capital levels to detect further contractions.
• Review of turnover and profitability trends when available to assess operational performance.
• Watch for any delays in future account or confirmation statement filings.
• Assessment of director involvement and any changes in management or ownership.
• Monitoring external economic factors impacting IT consultancy demand.