Company Number: 13100735

Analysis Date: 2025-07-20 14:28 UTC

1. Credit Opinion: APPROVE
   Method Marketing Ltd demonstrates a solid financial position with robust net assets and positive working capital. The company shows steady growth in net assets and net current assets over recent years, reflecting improving financial stability. There are no overdue filings or signs of financial distress, and the sole director has full control, which suggests streamlined management. The company’s liquidity and balance sheet strength support its ability to service debt obligations.

2. Financial Strength:
   The balance sheet is strong for a small private limited company operating in advertising services. Net assets increased from £53.5k in 2023 to £65.8k in 2024, showing a positive equity trend. Fixed assets are minimal (£287 in 2024), indicating low capital intensity typical of the sector. The company has no long-term liabilities reported and maintains a low share capital (£1). The financial trajectory over five years shows consistent growth in shareholders’ funds, indicating retained earnings accumulation and profitability.

3. Cash Flow Assessment:
   Current assets of £81.6k exceed current liabilities of £16k, resulting in net current assets (working capital) of £65.5k, a strong liquidity position. Cash on hand is £70.7k, providing ample immediate liquidity to cover short-term obligations. Trade debtors are modest (£10.9k) and have decreased compared to the prior year, suggesting effective collection policies. The company appears well-positioned to meet working capital needs and short-term creditor payments without refinancing risk.

4. Monitoring Points:

• Monitor the continued growth in net assets and working capital to ensure ongoing financial stability as the business scales.
• Watch trade debtor aging and collection trends to avoid cash flow strain.
• Keep an eye on taxation and social security liabilities (£14k in 2024), ensuring timely payments and no build-up of arrears.
• Review director and management continuity given the single-person control structure, as dependence on one individual could pose operational risks.