Company Number: 13939658

Analysis Date: 2025-07-29 18:24 UTC

1. Credit Opinion: APPROVE with conditions.
   Michelle Howard Consulting Ltd is a recently incorporated small private limited company engaged in management consultancy. It shows a modest but stable net asset base and positive working capital, suggesting an ability to meet short-term obligations. However, the company’s financial scale is limited, with only one employee and limited fixed assets. The decline in net assets and current assets from 2024 to 2025 warrants monitoring. Approval is recommended for modest credit facilities, subject to regular financial review and confirmation of ongoing business activity and turnover generation.

2. Financial Strength:

• Net assets decreased from £9,280 in 2024 to £7,324 in 2025, indicating a reduction in retained earnings or profitability.
• Tangible fixed assets increased modestly to £1,408, primarily computer equipment, reflecting some investment in infrastructure.
• Shareholders’ funds remain positive at £7,324 with no external debt reported, indicating a low leverage position.
• Current assets decreased slightly (from £15,875 to £15,123), mainly due to a significant drop in debtors (£7,999 to £2,088), possibly indicating tighter credit control or reduced sales on credit.
• Current liabilities increased from £7,031 to £8,939, which though covered by current assets, shows some increased short-term obligations.

3. Cash Flow Assessment:

• Cash at bank increased significantly from £7,876 to £13,035, supporting liquidity and ability to meet immediate liabilities.
• Net current assets remain positive at £6,184, confirming sufficient working capital coverage.
• The company’s single employee structure and low fixed costs suggest manageable cash outflows.
• Debtor days should be monitored given the reduction in receivables, to ensure cash conversion remains timely.
• No external borrowings disclosed, so cash flow risk from financing appears low.

4. Monitoring Points:

• Profitability trends and retention of earnings as reflected in the profit and loss account reserve, which has declined.
• Debtor balances and credit management effectiveness, especially the drop in receivables year-on-year.
• Current liabilities growth and potential timing of payments impacting liquidity.
• Business activity level and turnover development given the company’s youth and small scale.
• Any changes in director or ownership structure, though currently controlled wholly by Michelle Howard.
• Filing compliance and timely submission of accounts and returns, which are currently up to date.