Company Number: 14719664

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NCT Consulting Ltd is a micro-entity operating in management consultancy since March 2023. The company shows a positive net asset position but with net current liabilities indicating working capital pressure. Given the early stage of the company, limited operating history, and modest capitalization (£524 equity), credit approval should be conditional on obtaining additional assurances such as personal guarantees or monitoring of cash flow performance. The directors’ background and control structure appear stable, which supports potential creditworthiness.

2. Financial Strength:
   The balance sheet as at 30 April 2024 shows:

• Fixed assets: £2,697 (minimal tangible assets, typical for service firms)
• Current assets: £9,917
• Current liabilities: £11,590
• Net current liabilities of -£1,673 indicating a slight working capital deficit
• Provisions for liabilities of £500 further reduce net assets
• Net assets stand at £524, representing minimal shareholder equity
  This thin equity base and working capital deficit imply limited financial buffer to absorb shocks or support growth without external funding.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, which may indicate liquidity constraints. The company employs only 2 people, suggesting low overhead costs, but the negative net current assets could pressure short-term cash flow. No detailed cash flow statement is provided, so it is critical to assess future receivables, payables, and cash conversion cycles closely. The company’s ability to maintain liquidity depends heavily on timely client payments and controlling expenses.

4. Monitoring Points:

• Liquidity trends: watch for improvements or deterioration in net current assets
• Profitability and cash generation in subsequent periods
• Timely filing of accounts and confirmation statements
• Changes in director or shareholder control that may affect governance
• Any increase in provisions or liabilities that could strain resources
• Client concentration risk given the small scale of operations