Company Number: 14738298

Analysis Date: 2025-07-29 13:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Jellicoe M&A Limited is a newly incorporated private limited company engaged in management consultancy (SIC 70229). The financials cover its first full year of operation. The balance sheet shows minimal net assets (£1.7k) and very tight working capital (net current assets of £564). Current liabilities, mainly tax liabilities (£81.8k), almost equal current assets (£84.2k), leaving limited liquidity cushion. The company’s ability to consistently service debt or meet unexpected obligations is therefore constrained at present. However, there are no overdue filings or signs of distress. Given the small scale and startup status, credit can be conditionally approved if facilities remain modest and closely monitored, with management demonstrating growth and improved cash flow in subsequent periods.

2. Financial Strength:

• Total assets less current liabilities stand at £1,689, reflecting a very small equity base.
• Net current assets are positive but minimal (£564), indicating very limited working capital.
• Fixed assets consist mainly of depreciated computer equipment (£1,125 net book value).
• The company carries a significant tax creditor (£81,821), which may relate to VAT or corporation tax, pressuring short-term liquidity.
• Shareholders’ funds equal total net assets, indicating no external debt beyond current liabilities.
• Investments of £14,903 are unlisted and illiquid, limiting immediate cash conversion.
  Overall, the balance sheet is very thin, typical for a new start-up but offering little buffer for financial stress or unexpected costs.

3. Cash Flow Assessment:

• Cash at bank is £15,137, representing limited cash reserves relative to liabilities.
• Debtors of £54,145 include a significant director’s current account balance (£30,213), which may not be readily collectible if funds are tied to director loans or expenses.
• Prepayments (£18,739) reduce available cash resources.
• The close match between current assets and current liabilities points to tight liquidity management and little room for operational disruptions.
• No historical income statement is available (small company exemption), limiting assessment of profitability or cash generation.
• With only one employee (the director), overhead is likely low, but ongoing cash inflows must be sufficient to cover liabilities, especially tax.
  Liquidity and working capital are fragile, necessitating close cash flow scrutiny.

4. Monitoring Points:

• Monitor the company’s ability to reduce or settle current tax liabilities promptly to avoid penalties or enforcement action.
• Track cash balances and cash flow statements when available to ensure ongoing liquidity.
• Review debtor aging and director’s account to verify collectability and absence of related party funding risks.
• Watch for improvements in net current assets and shareholder funds as business scales.
• Confirm timely filing of future accounts and confirmation statements to avoid regulatory risk.
• Assess operational performance and profitability as reported in subsequent periods to evaluate creditworthiness evolution.