MATTHEW CHARLES BUSINESS CONSULTANCY LIMITED

Executive Summary

Matthew Charles Business Consultancy Ltd is a startup micro-entity with minimal equity and a balance sheet supported primarily by director advances. Its financial position is very fragile, with limited trading history and no independent cash flow generation yet. Conditional credit approval is possible with close monitoring of operational cash flow, profitability, and compliance to mitigate early-stage risks.

MATTHEW CHARLES BUSINESS CONSULTANCY LIMITED - Analysis Report

Company Number: 15257029

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Matthew Charles Business Consultancy Limited is a newly incorporated micro-entity with very limited operating history and minimal financial data available. The company shows a positive net current asset position of £1, but this is nominal and largely reflects director advances rather than operating cash flow. The business is in the IT consultancy sector, which can be viable, but the lack of trading history and financial depth imposes risk. Credit approval may be considered conditionally subject to assurances on future trading performance and cash flow generation, with tight monitoring.

2. Financial Strength:
   The balance sheet is extremely thin, showing current assets of £2,155 mainly representing a director loan balance, and current liabilities almost equal to this amount (£2,154). Net assets stand at £1, indicating virtually no equity buffer. There are no fixed assets or retained earnings. This limited capitalisation and reliance on director funding suggest fragile financial strength. The company’s micro classification and single employee status further reflect its nascent stage.

3. Cash Flow Assessment:
   Cash flow data is not explicitly provided, but working capital is effectively neutral. The director has advanced £18,001 and repaid £15,846 during the period, leaving £2,155 outstanding as a current asset. This indicates the company is reliant on owner funding for liquidity. Without evidence of positive cash inflows from operations, the company currently lacks independent cash flow generation capacity. Liquidity risk is elevated until trading cash flow is established.

4. Monitoring Points:

• Trading revenue and profit trends in subsequent filings to confirm business viability.
• Cash flow from operations to reduce reliance on director advances.
• Timely filing of next annual accounts and confirmation statements to ensure compliance.
• Any changes in capital structure or additional external funding.
• Management changes or significant contracts won that could enhance financial stability.