NEW TOWN NET ZERO LIMITED

Executive Summary

NEW TOWN NET ZERO LIMITED shows early signs of financial stabilization with positive net assets and improved working capital after less than two years of operation. While the company operates in management consultancy with minimal fixed assets and no employees, cash flow prudence and debt servicing capacity appear adequate at this stage. Continued monitoring of liquidity and operational progress is recommended before extending significant credit facilities.

NEW TOWN NET ZERO LIMITED - Analysis Report

Company Number: SC760100

Analysis Date: 2025-07-29 14:06 UTC

1. Credit Opinion: APPROVE with caution. NEW TOWN NET ZERO LIMITED is a micro private limited company incorporated less than two years ago. The latest accounts show a significant improvement in net current assets and net assets, moving from a small net liability position in the prior year to a positive net asset position of £15,695. This indicates progress in building financial stability. The directors appear to be managing the business prudently, but as a young company with no employees and limited fixed assets, its ability to generate sustainable cash flows is still unproven. Lending decisions should consider the nature of the business (management consultancy) and the apparent working capital reliance.

2. Financial Strength: The balance sheet as of 28 February 2025 shows total fixed assets of £1,722 and current assets of £86,383, mainly composed of cash or receivables given the prepayments figure of £35,000. Current liabilities stand at £107,410, which is significant but the company reports net current assets of £13,973, suggesting some short-term liquidity. The net assets of £15,695 represent positive equity after less than two years of trading. The company has no employees, which limits overheads and may indicate a consultancy model relying on the directors.

3. Cash Flow Assessment: The substantial increase in current assets from £5,759 to £86,383 within a year, alongside a rise in prepayments from £5,043 to £35,000, suggests improved cash inflows or investment into working capital. However, current liabilities have also increased markedly, which could pressure liquidity if collections or cash conversion cycles lengthen. The company’s positive net current asset position is encouraging but close monitoring is warranted. Absence of employees implies low ongoing operating cash outflow pressure.

4. Monitoring Points:

• Monitor timely settlement of current liabilities and any changes in working capital dynamics.
• Watch for turnover growth and diversification of income streams to reduce reliance on directors.
• Review subsequent filings for any material changes in liquidity or emergence of trade creditors.
• Assess management’s ability to scale operations and generate consistent cash flows.
• Confirm no director conduct issues emerge that could affect governance or credit standing.