Company Number: 14457171

Analysis Date: 2025-07-29 13:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MS Advisory Group Limited is a recently incorporated private limited company operating in management consultancy (SIC 70229). The company shows a modest net asset base (£6,782) and a positive working capital position. However, it carries a material long-term creditor balance (£109,000) which substantially impacts net assets and financial flexibility. Given its early stage of operations (just over one year), limited employee base (1), and absence of an audit, the credit risk is moderate. Approval is recommended subject to monitoring the company’s ability to reduce long-term liabilities and improve equity and profitability.

2. Financial Strength:
   The balance sheet shows total current assets of £117,980 including cash of £97,979, offset by current liabilities of only £2,198, resulting in strong net current assets of £115,782. Long-term creditors of £109,000 reduce net assets to £6,782. Shareholder funds equal net assets, reflecting the company’s equity position. The company’s financial strength is constrained by this long-term creditor, which may represent a loan or related party balance. Absence of fixed assets and limited accumulated profits means capital structure is relatively weak but not uncommon for a start-up consultancy.

3. Cash Flow Assessment:
   Cash holdings of £97,979 relative to current liabilities of £2,198 indicate ample short-term liquidity to meet near-term obligations. Debtors of £20,001 also support working capital. The high net current assets suggest good short-term cash flow management. However, the substantial long-term creditor balance requires scrutiny as it could entail future cash outflows or refinancing risks. The company currently has sufficient liquid resources but must demonstrate cash generation from operations going forward to service long-term debt.

4. Monitoring Points:

• Progress in reducing or refinancing the £109,000 long-term creditor balance
• Development of profitability and accumulation of retained earnings beyond the current £6,781 reserve
• Cash flow from operations to support debt servicing and potential growth
• Any changes in director or shareholder structure given sole control by Dr. Maggie Semple
• Timely filing of future accounts and confirmation statements to maintain compliance