Company Number: 13476703

Analysis Date: 2025-07-29 13:44 UTC

1. Credit Opinion: DECLINE
   Julia Mckeough Design Limited, a micro private limited company operating in specialised design activities, shows a deteriorating liquidity position and declining net current assets over the last financial year. Despite being active and properly filing accounts and confirmation statements on time, the company’s current assets decreased sharply from £88,066 in 2023 to £36,873 in 2024, while current liabilities reduced significantly from £50,562 to £2,186. However, the large drop in current liabilities appears driven by settling payables or short-term debts rather than improved operational cash flow. The shareholder funds have also declined marginally from £37,504 to £34,687, indicating erosion of equity. The company employs no staff, suggesting limited scale and potentially constrained operational capacity. The absence of audit and reliance on micro-entity reporting reduces financial transparency. Given these factors and the lack of clear evidence of consistent profitability or cash generation, the company’s ability to service new credit facilities or repay debt obligations is questionable, warranting a decline recommendation without further supporting information or personal guarantees.

2. Financial Strength:
   The balance sheet indicates a shrinking asset base and shareholder equity over three years: Shareholders funds fell from £64,133 (2021) to £34,687 (2024), signaling cumulative losses or withdrawals. Current assets have been volatile, dropping from £178,570 (2021) to £36,873 (2024). The significant reduction in current liabilities from £99,393 (2021) to £2,186 (2024) may reflect debt repayment or liabilities restructuring but requires scrutiny. Overall, the company maintains positive net current assets (£34,687) as of 2024, but the downward trend in equity and assets raises concerns about financial sustainability and capital adequacy.

3. Cash Flow Assessment:
   The company’s liquidity appears weak and declining. The current ratio improved dramatically to approximately 16.9 in 2024 (current assets £36,873 vs liabilities £2,186) due to reduced liabilities rather than increased assets or cash inflow. No employees are reported, which may reduce cash burn but also limits operational growth. The absence of detailed cash flow statements and profit & loss data restricts precise cash flow assessment. However, the declining equity and asset base suggest limited internal cash generation and a potential reliance on shareholder funds or external financing to maintain operations.

4. Monitoring Points:

• Track quarterly cash flow and bank balances to verify liquidity sufficiency.
• Monitor creditor days and payables to detect emerging liquidity stress.
• Review any changes in ownership or director arrangements that may impact governance.
• Watch for timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Assess operational activity and client contracts to gauge revenue stability and growth prospects.
• Confirm whether the director intends to inject additional capital or provide personal guarantees if credit is extended.