MARNHULL CONSULTING SERVICES LTD

Executive Summary

Marnhull Consulting Services Ltd maintains a healthy liquidity position with net current assets and cash well above current liabilities, supporting its ability to service debt. Despite a contraction in net assets and working capital, the company remains financially stable with no immediate credit concerns but requires ongoing monitoring of cash flow and profitability trends. Overall, it is creditworthy for standard facilities with prudent oversight.

MARNHULL CONSULTING SERVICES LTD - Analysis Report

Company Number: 13130521

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: APPROVE with caution
   Marnhull Consulting Services Ltd demonstrates solid liquidity and a conservative balance sheet with no overdrafts or long-term debt indicated. The company’s current assets, primarily cash, comfortably exceed current liabilities, which supports its ability to meet short-term obligations. However, the noticeable decline in net assets and net current assets from 2023 to 2024 suggests some financial contraction, warranting monitoring. The director’s advances to the company and repayment flows appear manageable but should be tracked to ensure no undue reliance on director funding.

2. Financial Strength:
   The company’s net assets decreased from £94,287 in 2023 to £79,954 in 2024, primarily due to a reduction in cash balances (£123k to £98.5k) and a significant drop in debtors (£6.4k to £0.3k). Fixed assets increased modestly, reflecting reinvestment in equipment. Current liabilities reduced materially from £37k to £21.9k, improving the current ratio. Overall, the equity base remains positive and sizable relative to share capital (£100), indicating financial resilience for a micro/small entity.

3. Cash Flow Assessment:
   Cash on hand remains strong at £98.5k, significantly exceeding current liabilities, indicating a healthy liquidity position. The company’s working capital is positive at £76.9k, providing ample buffer for operational needs. However, the sharp drop in debtors might suggest tighter credit control or reduced sales, which could impact future cash inflows. The director’s net advances to the company stand at -£312, a minimal liability, showing no excessive dependence on director funding currently.

4. Monitoring Points:

• Track cash flow trends closely for any signs of liquidity tightening, especially given the decline in cash reserves and debtors.
• Monitor profitability and retained earnings since the profit and loss reserve fell from £94,187 to £79,854, which may indicate reduced profitability or increased expenses.
• Keep an eye on the director’s advances and repayments to ensure they remain balanced and do not substitute for external financing.
• Review debtor levels and credit control policies to avoid future cash flow risks from delayed collections.