JEFFREYS CONSULTANCY LTD

Executive Summary

Jeffreys Consultancy Ltd, a newly incorporated management consultancy, shows a solid financial footing with positive retained earnings and strong liquidity. The company’s cash position comfortably covers short-term liabilities, and governance appears stable under a single director-shareholder. Credit approval is recommended with ongoing monitoring of profitability and statutory compliance as the business develops.

JEFFREYS CONSULTANCY LTD - Analysis Report

Company Number: 15078895

Analysis Date: 2025-07-20 14:49 UTC

1. Credit Opinion: APPROVE. Jeffreys Consultancy Ltd shows a strong initial financial position for a company incorporated in August 2023. The company has generated a profit in its first year, maintains a positive net current asset position, and holds sufficient cash balances to cover short-term liabilities. There are no indications of financial distress or governance concerns. The sole director and controlling shareholder appears to be actively managing the business. Given the company’s early stage, credit approval should be conditional on continued trading performance and timely filing of future accounts and confirmation statements.

2. Financial Strength: The company’s balance sheet as at 31 August 2024 shows total current assets of £110,094 (all cash) against current liabilities of £44,266, resulting in net current assets of £65,828. Shareholders’ funds equal £65,828, reflecting earned retained earnings net of dividends paid. There are no fixed assets or long-term liabilities reported. The company is classified as a small entity with minimal financial complexity. The absence of debt and strong liquidity mitigate balance sheet risk. However, a lack of tangible fixed assets may limit collateral value for secured lending.

3. Cash Flow Assessment: Cash at bank of £110,094 exceeds current liabilities by approximately 2.5 times, indicating good short-term liquidity and working capital sufficiency. The tax creditor of £31,402 and VAT creditor of £10,037 represent the majority of current liabilities and should be monitored closely to ensure timely settlement. The director has drawn dividends of £36,000 during the period, which is supported by the company’s profit of £101,828, suggesting prudent cash management. Overall, the company demonstrates the ability to meet its near-term obligations from available cash resources.

4. Monitoring Points:

• Future profitability and cash generation trends, as the company is still in its first year of operation.
• Timeliness and accuracy of statutory filings (accounts, confirmation statements).
• Changes in director or ownership structure, given single director and shareholder control.
• Settlement of tax and VAT liabilities to avoid enforcement action.
• Working capital management if business scale increases, especially managing receivables and payables.
• Any emergence of external debt or contingent liabilities.