Company Number: 13828551

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mulberry Lodge Consulting Ltd shows signs of financial strain in the most recent year with net liabilities of £39,045 and negative net current assets of £27,519. Although the company is active and not in liquidation, the worsening balance sheet from a positive net asset position of £7,634 in 2023 to a negative position in 2024 raises concerns regarding its ability to meet short-term obligations without additional funding or restructuring. Approval for credit facilities would therefore be conditional upon confirmation of a turnaround plan or additional capital injection.

2. Financial Strength:
   The company’s financial strength has deteriorated notably over the last 12 months. The net current assets swung from a positive £8,397 in 2023 to a negative £27,519 in 2024, indicating liquidity pressure. Total net assets moved from a modest positive £7,634 to a significant deficit of £39,045, reflecting accumulated losses or increased liabilities. The micro-entity status means limited disclosure, but current liabilities exceeding current assets is a red flag for solvency. The absence of fixed assets information suggests minimal long-term asset backing.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets, the company is likely facing working capital challenges. The minimal current assets (£176) compared to liabilities (£27,695) point to very limited liquidity. The company may struggle to cover short-term debts or operational expenses without external financing. The small average employee number (2) implies low overheads, but cash flow management appears critical. No related party transactions were reported, so no immediate concerns of off-balance sheet support exist.

4. Monitoring Points:

• Track quarterly cash flow statements or management accounts to assess improvement in liquidity.
• Monitor changes in net current assets and net liabilities for signs of financial recovery or further deterioration.
• Review director’s plans for recapitalisation or cost control measures.
• Watch for timely filing of future accounts and confirmation statements to confirm ongoing compliance and operational status.
• Observe any changes in ownership or management that could impact governance and financial health.