JAMES POOLEY ARCHITECTURE LTD

Executive Summary

James Pooley Architecture Ltd is a small architectural practice with improving but still weak liquidity and working capital positions. The balance sheet shows modest net asset growth but persistent net current liabilities, indicating tight cash flow. Conditional credit approval is recommended, contingent on continued careful cash management and monitoring of liquidity metrics.

JAMES POOLEY ARCHITECTURE LTD - Analysis Report

Company Number: 13667001

Analysis Date: 2025-07-20 11:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   James Pooley Architecture Ltd is a very small architectural practice with micro-entity financial filings. The company is currently active and has no overdue filings, which is positive. However, the balance sheet reveals persistent net current liability positions, indicating working capital deficiencies. The net assets have improved from £663 in 2023 to £1,302 in 2024, showing a modest strengthening of the equity base, but liquidity remains tight. Given the low asset base and negative net current assets, the company can service limited credit facilities but may struggle with larger or longer-term debt. Approval is conditional on maintaining or improving liquidity and prudent cash flow management.

2. Financial Strength:
   The company has total fixed assets of approximately £2,852 (2024), which are minimal and likely represent essential equipment or software for architectural services. Current assets dropped significantly from £1,755 in 2023 to £559 in 2024, while current liabilities reduced markedly from £4,416 to £2,109, resulting in a net current liability of £1,550, which is an improvement from the prior year but still negative. Shareholders’ funds have doubled to £1,302, reflecting retained earnings or capital injections. Overall, the balance sheet reflects a fragile financial position typical of a micro-entity start-up, with ongoing working capital constraints.

3. Cash Flow Assessment:
   The 2023 accounts show cash at £1,055, but this figure is embedded within current assets and not separately disclosed for 2024. The reduction in current assets and liabilities suggests some cash has been used to pay down creditors, but negative net current assets indicate potential liquidity stress. The company’s ability to convert debtors to cash and manage payables will be critical. With only one employee and low overheads, cash burn may be limited, but the working capital deficits imply the company should maintain stringent cash flow controls to avoid payment delays.

4. Monitoring Points:

• Monitor net current assets and liquidity ratios closely in subsequent filings to ensure working capital deficits do not worsen.
• Track debtor collection periods and creditor payment terms to assess cash flow efficiency.
• Watch for any significant changes in fixed assets or capital structure that could impact financial flexibility.
• Review any changes in business scale or employee numbers that may increase operating costs.
• Observe director conduct and filing timeliness to maintain compliance and governance standards.