Company Number: SC766393

Analysis Date: 2025-07-29 13:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   New Priory Monuments Ltd is a newly incorporated company (April 2023) operating in the funeral and related services sector. It has filed its first set of accounts showing modest but positive net assets and working capital. The director and sole significant controller is Mr. James Akelis, who also acts as company secretary, indicating concentrated management oversight. The company demonstrates initial financial stability but limited operating history and relatively low capitalisation warrant caution. Extension of credit could be considered with conditions such as monitoring trading performance, timely filing of future accounts, and clear visibility on cash flow generation.

2. Financial Strength:
   The company’s balance sheet as of April 30, 2024, shows fixed assets of £38,026 and current assets of £46,903, comprising debtors (£38,000) and cash (£8,903). Current liabilities stand at £38,976, resulting in net current assets (working capital) of £7,927 and net assets of £43,953. Shareholders’ funds primarily consist of retained profits (£43,943) with minimal share capital (£10). The balance sheet is healthy for a start-up, with no long-term liabilities or provisions. Related party debt of £23,512 owed to the director suggests some reliance on director funding, which is typical for a new venture but should be monitored.

3. Cash Flow Assessment:
   Cash at bank is relatively low (£8,903) compared to trade debtors (£38,000), indicating potential exposure to debtor collection risk. The working capital position is positive but tight, with current liabilities nearly equal to current assets excluding debtors. The company’s ability to convert receivables to cash promptly will be critical for liquidity. Absence of detailed profit and loss information limits full cash flow analysis, but the positive net assets and working capital imply initial operational viability. Close attention should be paid to debtor ageing and cash conversion cycles.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statement to ensure ongoing compliance.
• Debtor collection efficiency and potential buildup of overdue receivables.
• Cash flow trends and any increasing reliance on director loans or external financing.
• Profitability development and accumulation of retained earnings to strengthen equity base.
• Any changes in director or ownership structure that may affect governance or control.