LIST PUBLISHING LTD

Executive Summary

List Publishing Ltd demonstrates improving financial position with strengthening net assets and positive working capital, though absolute financial scale remains small. Liquidity is adequate but tightened due to reduced cash and increased receivables, necessitating close monitoring of cash flow and debtor management. Credit approval is recommended with ongoing oversight on short-term liquidity and operational profitability.

LIST PUBLISHING LTD - Analysis Report

Company Number: SC717628

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: APPROVE with caution. List Publishing Ltd is a small private company in the directories and mailing lists publishing sector, with a relatively short trading history since incorporation in late 2021. The company shows improving net current assets and shareholder funds over the last two years, indicating some financial strengthening. However, modest absolute figures and reliance on current assets to cover liabilities suggest limited financial buffer. No adverse filings or overdue returns are noted, and the directors appear stable and experienced. The company’s ability to service short-term obligations and repay debt appears adequate currently, but monitoring liquidity closely is advised.

2. Financial Strength: The balance sheet shows a net asset position improving from £37.3k in 2022 to £55.3k in 2023. Fixed assets are modest (£32.3k) and largely intangible goodwill, amortised over a short life, indicating limited tangible collateral. Current assets (£190.8k) exceed current liabilities (£167.8k), resulting in positive net working capital of £23.0k, up from £1.7k the previous year. Cash balances have decreased from £128.4k to £82.0k, but trade debtors increased substantially from £71.2k to £106.9k, suggesting greater sales on credit. The company is small in scale with limited equity but shows a positive trajectory in net assets and working capital.

3. Cash Flow Assessment: Cash on hand has declined year-over-year by approximately £46k, while current liabilities have decreased by £32k, partially offsetting liquidity pressure. The growth in trade receivables indicates potential cash conversion risk if debtor collections slow. Positive net current assets indicate some short-term liquidity buffer, but the company’s working capital is tight relative to liabilities. No long-term debt is reported, which reduces fixed financing costs and pressure on cash flows. Continued monitoring of debtor days and cash conversion cycles is essential to ensure ongoing liquidity.

4. Monitoring Points:

• Debtor collection periods and quality of receivables, given the increase in trade debtors.
• Cash flow trends in future periods to ensure the cash burn rate remains sustainable.
• Profitability trends, as income statement details are not filed; profitability will impact reserves and cash.
• Any changes in related party balances (amounts owed to associates remain significant at £36k).
• Management actions on controlling current liabilities and maintaining positive working capital.
• External economic factors affecting publishing and mailing list sectors, potentially impacting revenue.