Company Number: 15113922

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Paradigm First Aid Training Limited is a newly incorporated micro-entity with a very limited operating history (just over one year). The financials reflect a very small-scale business with minimal assets and equity. The company currently has net current liabilities and nominal net assets, indicating tight working capital and limited financial buffer. However, there are no overdue filings or insolvency concerns, and the sole director has full control and is actively managing the business. Credit approval could be considered with conditions such as small facility size, short-term tenor, and regular financial monitoring until a more robust operating history and positive cash flows develop.

2. Financial Strength:
   The balance sheet at 30 September 2024 shows fixed assets of £868 and current assets of £1,786 against current liabilities of £2,124, resulting in net current liabilities of £338. After accounting for long-term creditors and deferred income, net assets stand at a marginal £46. Shareholders’ funds equal net assets, indicating no external equity or retained earnings beyond initial capital. The company operates as a micro-entity with one employee (the director). The financial position is fragile with limited tangible asset backing and working capital deficits, typical for a start-up.

3. Cash Flow Assessment:
   Current liabilities slightly exceed current assets, implying potential liquidity constraints. The company must rely on cash inflows from operations or additional capital injections to meet short-term obligations. The absence of significant reserves or retained earnings means any cash flow disruption could impair payment capability. Without detailed cash flow statements, the working capital position and small scale suggest tight liquidity, requiring close monitoring. The director’s involvement is critical to managing payables and receivables prudently.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios over the next 12 months.
• Generation of positive operational cash flows and build-up of retained earnings.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Any changes in director or significant control that could impact governance or financial stewardship.
• Growth in turnover and profitability to assess scalability and sustainability.