Company Number: 13920529

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Palace Glory Limited is a very young private limited company incorporated in 2022, operating in the human health activities and business support services sectors. The company currently shows modest net assets (£796 as of 29 Feb 2024) and has a negative working capital position (net current liabilities of £154). While the company is active and compliant with filing deadlines, the minimal scale of assets and continuing working capital deficits pose liquidity risks. Approval for credit facilities should be conditional on close monitoring, with limits aligned to the company’s size and cash flow capacity.

2. Financial Strength: The company’s balance sheet reveals a small asset base. Fixed tangible assets have declined from £1,900 to £950 in the latest year due to depreciation. Current assets are limited to primarily cash balances of £897 with no reported debtors. Current liabilities have decreased significantly from £2,253 to £1,051, improving but still exceeding current assets. Net assets have reduced from £1,243 to £796, reflecting asset depreciation and possible operating losses (profit and loss reserve dropped from £1,143 to £696). The shareholder, Ms. Folasade Adetoro Adelusi, holds full control, which simplifies governance but concentrates risk.

3. Cash Flow Assessment: Liquidity is constrained. Cash at bank decreased from £1,496 in 2023 to £897 in 2024. The company operates with negative net current assets, indicating an inability to cover short-term liabilities with current assets fully. No employees are reported, suggesting a low operating cost base but also possibly limited business scale and revenue generation. Absence of trade debtors may suggest limited credit sales or low business volume. The company’s ability to generate positive cash flows to meet financial commitments remains unproven and will require monitoring.

4. Monitoring Points:

• Working capital trends: Watch if net current liabilities reduce further or turn positive.
• Cash balances: Ensure cash does not decline below critical levels threatening day-to-day operations.
• Profitability and reserves: Monitor if the profit and loss reserve recovers or further erodes.
• Payment history: Track timely settlement of creditors to avoid liquidity or credit rating issues.
• Business development: Assess growth in turnover and diversification of income sources.
• Director’s financial support: Given the shareholder’s full control, check for any director loans or capital injections that might support liquidity.