Company Number: 13123800

Analysis Date: 2025-07-20 11:13 UTC

1. Credit Opinion: APPROVE
   New Referrals Ltd demonstrates a stable financial position with positive net assets and working capital. The company is relatively new but shows sound equity growth and controlled liabilities. There are no indications of financial distress or overdue filings. Directors appear stable and engaged, with no adverse records. The company operates in a niche IT services sector, which supports potential for steady demand. Overall, the credit risk is low and the company should be able to meet debt and commercial obligations.

2. Financial Strength:
   The balance sheet reveals net assets of £13,283 for the year ended March 2024, up from £11,385 in 2023, indicating modest equity growth. Fixed assets are minimal (£416), typical for an IT service provider, and current assets exceed current liabilities comfortably, giving net current assets of £12,872. The increase in net assets is supported primarily by improved working capital management rather than fixed asset investment. The company is micro-sized with only 2 employees, limiting operational risk exposure.

3. Cash Flow Assessment:
   Current assets of £16,426 include cash and receivables sufficient to cover current liabilities of £3,554, a healthy liquidity position. Net current assets indicate strong short-term financial flexibility. The significant reduction in current assets from prior year (£63,668 in 2023) suggests either collection of receivables or reduced stock, improving liquidity. No evidence of overdue payables or accrual concerns exists. The company appears capable of managing working capital and meeting short-term obligations without strain.

4. Monitoring Points:

• Continued growth in net assets and working capital to confirm financial stability.
• Cash flow trends given the marked reduction in current assets year on year.
• Any changes in director appointments or PSC structure that could impact governance.
• Sector performance in IT services, especially veterinary digital solutions niche, for revenue sustainability.
• Upcoming filings and confirmation statement compliance to ensure ongoing regulatory adherence.