Company Number: SC719105

Analysis Date: 2025-07-20 14:01 UTC

1. Credit Opinion: DECLINE
   JUNE MURRAY WEALTH MANAGEMENT LTD demonstrates significant weaknesses in financial structure and liquidity. The company shows negative net current assets (£-13,750 in 2024) indicating working capital deficiencies and an inability to cover short-term liabilities from current assets. Moreover, the large amount of creditors due after one year (£75,716) compared to net assets (£2,592) signals high gearing and potential solvency risk. The business is in its second year of operations with limited equity growth (£598 to £2,592). Without stronger cash flow or asset backing to service debts, the risk profile is elevated. No audit has been performed, limiting assurance on financial accuracy. These factors suggest the company is not currently creditworthy for unsecured or significant lending.

2. Financial Strength:
   The balance sheet reveals intangible assets (goodwill) of £92,058, which may not be easily realisable if cash is needed. Current assets (£8,318) are insufficient to meet current liabilities (£22,068), resulting in a working capital deficit. Long-term creditors (£75,716) dominate liabilities, creating a leveraged position with minimal shareholder funds (£2,592). The minimal increase in net assets over the year indicates slow capital build-up. Overall, the financial position is fragile, with negative liquidity and high leverage undermining solvency and financial resilience.

3. Cash Flow Assessment:
   Cash holdings improved from £1,971 to £5,353 but remain low relative to total liabilities. Debtors decreased substantially (£5,649 to £2,965), which may impact expected inflows. Negative net current assets and significant creditor balances suggest tight liquidity and potential cash flow stress. The company’s ability to meet short-term obligations relies heavily on timely collection of receivables and potentially refinancing long-term debt. This liquidity risk is a key concern for credit extension.

4. Monitoring Points:

• Liquidity ratios: monitor current ratio and quick ratio to track short-term coverage improvements.
• Debtor turnover and ageing to assess cash inflows and credit risk.
• Movement in long-term creditors to evaluate refinancing or repayment progress.
• Profitability trends once P&L data is available to gauge earnings capacity.
• Any changes in goodwill valuation or impairment risks impacting net assets.
• Director June Murray’s financial stewardship and company filings compliance.