NORTHFARTHING LIMITED

Executive Summary

Northfarthing Limited is a small, active management consultancy with stable net assets and positive working capital, reflecting sound financial health typical of a micro-entity. The company demonstrates sufficient liquidity to meet short-term obligations and complies with statutory requirements. Based on current financials and operational stability, the company is suitable for credit approval with routine monitoring of key financial metrics.

NORTHFARTHING LIMITED - Analysis Report

Company Number: 14493083

Analysis Date: 2025-07-29 19:34 UTC

1. Credit Opinion: APPROVE
   Northfarthing Limited demonstrates stable financial footing with positive net assets and net current assets over the last two years. The company operates in management consultancy, a sector with generally low capital intensity, which aligns with the micro-entity scale. There is no indication of overdue filings or financial distress. The firm’s liquidity position is adequate to meet short-term obligations, and the modest increase in current liabilities is manageable given rising current assets. The directors appear compliant with statutory duties, and there is no adverse information suggesting governance risks. Given these factors, credit extension can be approved with standard monitoring.

2. Financial Strength:
   The balance sheet reflects sound financial health for a micro-entity. Net assets stand at £11,438 as of 31 March 2024, a slight increase from £11,000 the previous year. Current assets of £20,246 exceed current liabilities of £7,798, yielding positive net current assets of £12,448, supporting working capital adequacy. The company has no long-term liabilities reported, indicating limited leverage and financial risk. Shareholders’ funds correspond to net assets, showing equity is intact. The small but stable capital base is typical and acceptable for a company of this size and lifecycle stage.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the increase in current assets alongside manageable current liabilities suggests adequate liquidity. The company employs 2 staff, indicating low fixed overheads, which should preserve cash flow flexibility. The positive net current assets position confirms working capital sufficiency to cover near-term liabilities. No accrual or deferred income amounts threaten liquidity materially. Overall, the company appears to maintain healthy short-term cash flow management consistent with its micro-entity status.

4. Monitoring Points:

• Monitor growth in current liabilities to ensure they remain proportionate to current assets and do not strain liquidity.
• Track revenue and profitability trends annually when full accounts become available to identify any emerging financial pressures.
• Confirm continued compliance with filing deadlines to avoid regulatory penalties.
• Review director conduct and company status periodically for any changes that could impact creditworthiness.
• Observe any changes in business activity or staffing levels that might affect operational risk.