LYREBIRD CONSULTING LTD

Executive Summary

Lyrebird Consulting Ltd is a small but financially stable company with improving net assets and strong liquidity supported by increasing cash balances. While the business demonstrates sound working capital management and the ability to meet short-term obligations, credit approval should be conditional on ongoing monitoring of cash flow and receivables to mitigate concentration and scale risks. Overall, the company shows adequate financial strength for modest credit facilities with active oversight.

LYREBIRD CONSULTING LTD - Analysis Report

Company Number: 13057440

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lyrebird Consulting Ltd demonstrates moderate financial stability with positive net assets and net current assets, indicating an ability to meet short-term obligations. The company has shown improvement in net assets and liquidity in the latest financial year. However, the relatively small scale of operations, limited share capital, and concentration of control in two directors suggest some risk if key personnel changes occur. Credit approval should be conditional on continued monitoring of cash flow and receivables collection to ensure ongoing debt servicing capability.

2. Financial Strength:

• Net assets increased from £19,766 at end 2023 to £36,808 at end 2024, reflecting retained earnings growth and improved equity position.
• Net current assets rose from £17,750 to £34,907, indicating stronger working capital management.
• Fixed assets are minimal (£1,901), consistent with a service business model and low capital expenditure requirements.
• Share capital is only £100, which limits the equity cushion but is offset by accumulated retained profits.
  Overall, the balance sheet shows a sound financial base for a small private limited company with no significant debt beyond current liabilities.

3. Cash Flow Assessment:

• Cash balance increased substantially from £36,938 to £63,180, improving liquidity and ability to cover current liabilities (£39,586).
• Debtors remain stable around £11k, which is reasonable but should be monitored for timely collection to avoid cash flow strain.
• Current liabilities mainly comprise taxation and social security costs (£39,235), which appear manageable given the cash resources.
• Positive net current assets highlight sufficient short-term liquidity, but the company should maintain strict control over payables and receivables to sustain this position.

4. Monitoring Points:

• Continued growth or stability in net assets and retained earnings to enhance financial resilience.
• Receivables aging and collection efficiency to prevent cash flow disruption.
• Changes in director composition or control structure that could impact management continuity.
• Timely payment of tax and social security liabilities to avoid penalties or enforcement actions.
• Any increase in liabilities or decline in cash balances that may weaken liquidity.