NORTHLIGHT ARCHITECTS LIMITED

Executive Summary

Northlight Architects Limited is a newly formed small architectural firm with limited financial history and a negative working capital position. The company’s current financials suggest potential liquidity constraints despite being compliant with filing deadlines. Credit approval is conditional, recommending close monitoring of cash flow and working capital alongside risk mitigation through guarantees or collateral.

NORTHLIGHT ARCHITECTS LIMITED - Analysis Report

Company Number: 14663478

Analysis Date: 2025-07-29 18:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Northlight Architects Limited is a newly incorporated private limited company operating in architectural activities. The company’s first set of accounts shows a modest net asset base (£1,663) with negative net current assets (-£17,087), indicating a working capital deficiency. While the company is active and has no overdue filings, the current liabilities exceed current assets, which may pressure liquidity. The sole director and 100% shareholder Mr Ralph Cooley appears to have strong control, but with limited trading history and a small equity base, credit exposure should be cautiously managed. Approval can be considered with conditions such as monitoring liquidity closely and requiring personal guarantees or additional collateral where appropriate.

2. Financial Strength:
   The balance sheet reflects a small company with total fixed assets of £18,750 (mainly intangible assets, amortised goodwill) and current assets of £69,534 including debtors of £44,240 and cash of £6,794. Current liabilities stand at £86,621, leading to negative net current assets of £17,087. Shareholders’ funds are minimal at £1,663. The business is in its infancy, so the limited retained earnings and equity base are typical but highlight vulnerability. The company's reliance on trade debtors and other current assets to meet short-term obligations is a risk factor given the working capital shortfall.

3. Cash Flow Assessment:
   Cash held is low (£6,794), and the company’s current liabilities significantly exceed current assets. This suggests potential liquidity challenges in meeting immediate obligations without additional financing or cash inflows from operations. Debtor levels are relatively high, indicating possible concentration risk or slow collections. The absence of an income statement limits insight into profitability and cash generation, but the working capital deficit implies tight cash flow management will be essential.

4. Monitoring Points:

• Net current assets and liquidity position in subsequent periods
• Timely collection of trade debtors to improve cash availability
• Development of retained earnings and equity base to strengthen financial resilience
• Director’s management of working capital and any external financing arrangements
• Filing of next accounts and confirmation statement on time
• Any material changes in volume or nature of liabilities, especially tax and social security creditors