LEAD AGILE LIMITED

Executive Summary

Lead Agile Limited is a micro-entity in the IT consultancy sector with a positive net asset base and no current liabilities, indicating solid short-term liquidity. However, the company relies on an unsecured director loan, which introduces some risk. Credit approval is recommended with ongoing monitoring of cash flow and director loan exposure to safeguard against potential financial stress.

LEAD AGILE LIMITED - Analysis Report

Company Number: 13527738

Analysis Date: 2025-07-20 13:19 UTC

1. Credit Opinion: APPROVE with caution
   Lead Agile Limited demonstrates a positive equity position and no current liabilities as of the latest financial year, indicating low short-term financial risk. However, the company is very small (micro category) with just one employee and limited fixed assets, and it has a significant director loan on the balance sheet. The unsecured, interest-free loan to the director (over £52k) represents a potential risk if the director's financial position weakens. Given these factors, credit approval should be granted with monitoring conditions focused on cash flow and director loan arrangements.

2. Financial Strength:
   The company’s net assets decreased from approximately £97.5k in 2023 to £81.6k in 2024, showing a modest decline in equity. Current assets are mainly cash or equivalents (£81.6k), with no current liabilities reported, indicating good liquidity but limited operational scale. Fixed assets are negligible or zero, consistent with the IT consultancy business model. The balance sheet is clean but reflects a very small business with limited financial buffer. Shareholders’ funds entirely comprise retained earnings and director loans, which require scrutiny for potential encumbrances.

3. Cash Flow Assessment:
   Lead Agile Limited shows strong net current assets with no short-term liabilities, implying positive working capital and liquidity. However, the presence of a £52,689 director loan, unsecured and repayable on demand, suggests reliance on internal financing rather than external debt. No evidence of bank borrowings or external credit lines is visible, which could limit financial flexibility if cash inflows decline. The company’s ability to generate cash from operations is unquantified but given its micro size and single employee, cash flow volatility should be anticipated.

4. Monitoring Points:

• Track the director loan balance and any repayment schedules or changes in terms.
• Monitor operating cash flow trends to ensure the company is generating sufficient cash to meet obligations without reliance on director advances.
• Watch for changes in current assets and liabilities, particularly any emergence of short-term creditors.
• Keep an eye on company filings to ensure continued compliance and timely submission of accounts and confirmation statements.
• Review any strategic changes or growth initiatives that might impact credit risk, given the small scale.