NEW ATLANTIC ASSET MANAGEMENT LIMITED

Executive Summary

New Atlantic Asset Management Limited demonstrates positive net assets and timely compliance but shows signs of increased short-term liabilities and reduced equity, limiting confidence in its credit capacity. Further financial detail is essential to confirm cash flow adequacy and profitability before approving credit facilities. Conditional approval is recommended subject to receipt and satisfactory review of comprehensive financial statements.

NEW ATLANTIC ASSET MANAGEMENT LIMITED - Analysis Report

Company Number: 13433491

Analysis Date: 2025-07-29 13:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

New Atlantic Asset Management Limited is a small private limited company operating in real estate agencies (SIC 68310). The company has been active since 2021 and is filing accounts on time, with no overdue filings. The latest financials show positive net current assets and shareholders' funds, indicating some working capital buffer. However, the company’s shareholders' funds declined from £12,962 in 2023 to £8,219 in 2024, and current liabilities increased significantly from £5,540 to £14,733, suggesting rising short-term obligations. The absence of a profit and loss account limits the visibility of profitability and cash flow trends. Given the micro-entity status and limited disclosed financial detail, credit approval should be conditional on obtaining further financial information, specifically profit and loss statements and cash flow data, to better assess the ability to service debt.

2. Financial Strength:

• Share capital is nominal at £2, indicating minimal equity injection.
• Shareholders’ funds decreased by approximately 37% year-on-year (from £12,962 to £8,219).
• Current assets increased from £18,502 to £22,952, but current liabilities nearly tripled, resulting in a reduced net current asset balance.
• The company’s net assets remain positive but have declined, reflecting potential erosion of retained earnings or increased short-term debt.
• No fixed assets reported; the company appears asset-light, likely service-based.
• The company meets micro-entity thresholds, implying limited scale and financial robustness.

3. Cash Flow Assessment:

• Working capital remains positive (£8,219) but has decreased from previous year (£12,962).
• The sharp increase in current liabilities raises concerns about liquidity and short-term funding pressure.
• No employees reported, suggesting low overhead costs.
• Lack of profit and loss data and cash flow statements restrict full liquidity analysis.
• The increase in current liabilities without corresponding increase in current assets could indicate potential cash flow strain if liabilities are short term.

4. Monitoring Points:

• Obtain full profit and loss accounts and cash flow statements to evaluate profitability and operating cash flow.
• Monitor current liabilities trend and any changes in payment terms or creditor relationships.
• Watch shareholders’ funds movements for further equity erosion or recapitalization.
• Review any new contracts or business developments given the real estate agency sector’s sensitivity to economic cycles.
• Assess director conduct and any changes in management or ownership impacting financial stewardship.