Company Number: 13738654

Analysis Date: 2025-07-19 12:07 UTC

1. Credit Opinion: APPROVE with monitoring.
   Leams End Advisory Limited is a recently incorporated private limited company operating in management consultancy (SIC 70229). The company shows positive net current assets and net assets increasing from £50,023 in 2023 to £55,608 in 2024, indicating modest growth. The current liabilities have significantly decreased from £16,879 to £2,456, improving the liquidity position. The director is the main shareholder controlling 50-75%, with no adverse records or director disqualifications. The company’s cash position, while reduced to £43,026, remains adequate relative to liabilities. Given the small scale and absence of debt aside from director loans, the risk is low. However, the company has no employees and limited financial history, so credit should be extended cautiously with regular review.

2. Financial Strength:
   The balance sheet is conservative and stable with net assets of £55,608, which are entirely equity-funded (share capital £1 and retained earnings £55,607). The company carries no bank debt or external borrowings, only director loans which have been repaid during the year. Current assets mainly consist of cash and debtors, with net current assets at £55,608, signaling good short-term financial health. The slight increase in net assets year-on-year shows modest profitability or retained earnings accumulation. Overall, the company has a clean and straightforward financial structure with no gearing, which is positive for creditworthiness.

3. Cash Flow Assessment:
   Cash at bank decreased from £61,965 to £43,026 but remains sufficient to cover current liabilities of £2,456 by a comfortable margin (cash ratio >17x). Debtors increased to £15,038, suggesting some credit sales or accrued income; these are manageable given the low liabilities. Net current assets improved from £50,023 to £55,608, demonstrating good working capital management and liquidity. The absence of employees reduces operational cash outflow pressures. The company repaid director loans, which shows some cash was used for internal financing adjustments. There is no indication of cash flow stress.

4. Monitoring Points:

• Track cash and debtor balances to ensure collection remains timely and cash reserves are maintained.
• Monitor any growth in current liabilities or external borrowing that could affect liquidity.
• Review profit and loss account details when published to assess profitability trends.
• Watch for any changes in director or shareholder structure that may affect governance or credit risk.
• Confirm ongoing business activity and revenue generation as the company has no employees and limited history.