NTH DEGREE.DESIGN LTD

Executive Summary

Nth Degree.Design Ltd demonstrates improving financial health with strong net asset growth and enhanced liquidity in its second year of trading. The company’s ability to reduce liabilities and increase working capital supports credit approval, albeit on a modest scale given its micro size and trading history. Continued monitoring of cash flow and debtor management is recommended to ensure ongoing repayment capacity.

NTH DEGREE.DESIGN LTD - Analysis Report

Company Number: 14151595

Analysis Date: 2025-07-29 14:05 UTC

1. Credit Opinion: APPROVE with monitoring.
   Nth Degree.Design Ltd is a very young private limited company incorporated in 2022 operating in specialised design activities. The latest financials to 31 May 2024 show a solid improvement in net assets and working capital compared to the prior year. Current liabilities have significantly reduced, and net current assets have increased markedly, indicating improved liquidity and ability to meet short-term obligations. The company has no overdue filings and maintains a clean status, supporting operational continuity. The presence of director loans in the prior year has been substantially reduced, which is positive. The company’s scale is micro, with only one employee and modest turnover implied by exemption filing. While the business is still small and relatively concentrated, the financial trajectory is positive, supporting credit approval for modest facilities, subject to ongoing review of trading performance and cash flows.

2. Financial Strength:

• Net assets have grown from £5,179 in 2023 to £19,924 in 2024, reflecting accumulated profits retained in the business.
• Tangible fixed assets are minimal (£605), consistent with a service-oriented design business.
• Shareholders’ funds increased significantly, indicating profitable operations or capital injections.
• No significant long-term liabilities; current liabilities have reduced from £25,043 to £8,573, improving solvency.
  Overall, the balance sheet is healthy for the company size, with positive equity and good working capital.

3. Cash Flow Assessment:

• Cash balances dropped from £21,535 to £17,609, a manageable reduction given improved net working capital.
• Debtors increased from £7,708 to £10,398, which should be monitored for collection efficiency.
• Current liabilities decreased substantially, easing short-term cash demands.
• Net current assets improved from £4,200 to £19,434, indicating strong liquidity.
• The company appears capable of meeting short-term liabilities without distress.
  Liquidity is adequate, but debtor days and cash conversion should be watched as the business grows.

4. Monitoring Points:

• Continued trading performance and profitability to sustain equity growth.
• Debtor aging and collections to prevent cash flow strain.
• Any new director loans or related party transactions that could affect credit risk.
• Impact of limited scale and single-employee operation on business resilience.
• Filing of future accounts and confirmation statements on time to maintain compliance.