LONDON ASSOCIATES LTD

Executive Summary

London Associates Ltd shows a strong and improving financial position with significant growth in net assets and working capital, supporting its ability to service debt. The company’s sound liquidity and absence of overdue filings indicate good financial stewardship and operational stability. Approval is recommended with routine monitoring of asset and liability trends to maintain credit quality.

LONDON ASSOCIATES LTD - Analysis Report

Company Number: 12629874

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: APPROVE. London Associates Ltd demonstrates a strong and improving financial position with substantial growth in net current assets and shareholders’ funds over the last financial year. The company operates in a relatively stable sector (management consultancy) and shows no signs of financial distress or overdue filings. The directors appear responsible, with no adverse records. While the company is small and micro-entity status limits detailed financial disclosures, current liquidity and equity levels indicate solid repayment capacity for typical SME credit facilities.

2. Financial Strength: The balance sheet is healthy and improving. Net assets increased markedly from £17,123 in 2023 to £120,907 in 2024, reflecting business growth and retained earnings accumulation. Current assets grew substantially from £23,045 to £162,469, while current liabilities increased moderately from £5,222 to £39,772, maintaining a strong net working capital position of £122,697. Fixed assets remain minimal but adequate for a consultancy business. The company is well-capitalised relative to its size, with shareholders’ funds equal to net assets, indicating no long-term debt burden.

3. Cash Flow Assessment: Current assets are predominantly liquid or near-liquid, supporting good short-term liquidity. The large net current assets figure suggests the company has sufficient working capital to meet short-term obligations comfortably. The increase in creditors (current liabilities) is proportionate and not alarming. No overdrafts or loans are disclosed, implying prudent cash management. The company’s ability to generate cash from operations is supported by rising assets and equity, although detailed cash flow statements are not available due to micro-entity reporting exemptions.

4. Monitoring Points:

• Watch for continued growth in net current assets and net profits to ensure financial trajectory remains positive.
• Monitor the build-up in current liabilities to ensure it does not outpace asset growth, which could pressure liquidity.
• Track timely filing of accounts and confirmation statements as a proxy for good governance.
• Observe any changes in director composition or control that might affect management quality.
• Given micro-entity reporting, consider requesting supplementary financial information if credit exposure increases.