NIGEL SCHOLES CONSULTING LIMITED

Executive Summary

NIGEL SCHOLES CONSULTING LIMITED is a very small, micro-entity showing stable but limited financial growth with minimal assets and modest profitability. The business can currently service small obligations but lacks capacity for significant debt. Conditional credit approval is warranted with close ongoing monitoring of cash flow and profitability metrics.

NIGEL SCHOLES CONSULTING LIMITED - Analysis Report

Company Number: 12501614

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NIGEL SCHOLES CONSULTING LIMITED shows modest but consistent growth in turnover and profitability over recent years, indicating a developing business. However, absolute levels of revenue and net assets remain very low, typical for a micro entity with a single employee. The company’s ability to service significant debt appears limited given the low cash and working capital balances. Credit approval is possible but should be conditional on maintaining current profitability trends and no significant increase in borrowing beyond manageable levels.

2. Financial Strength:
   The company holds no fixed assets and minimal current assets (£732 at 2024 year-end) with no current liabilities, resulting in positive but small net assets (£732). Shareholders’ funds increased from £287 in 2023 to £732 in 2024, reflecting retained profits. The balance sheet is simple and clean, but equity and liquidity buffers are very thin. There is no indication of external financing or debt, which limits risk exposure but also suggests limited capital for expansion.

3. Cash Flow Assessment:
   Current assets are almost entirely cash or equivalents, with no creditors recorded, indicating sound short-term liquidity. However, turnover is below £17k annually with costs close to turnover, leaving a modest profit margin (£593 in 2024). Working capital is positive but minimal, so the company has limited capacity to absorb shocks or meet large payment obligations. The absence of debt reduces cash flow pressure but also limits leverage possibilities.

4. Monitoring Points:

• Track improvement or decline in turnover and net profitability to ensure ongoing viability.
• Monitor cash balances relative to upcoming liabilities to avoid liquidity strain.
• Review any material changes in business scale or cost structure that could impact debt servicing ability.
• Watch for director or shareholder changes that might affect management continuity.
• Confirm timely filing of accounts and returns to maintain regulatory compliance.