PARAGON EXECUTIVE SOLUTIONS LTD

Executive Summary

Paragon Executive Solutions Ltd shows a solid financial position with improving profitability, robust working capital, and no apparent liquidity concerns. The company’s micro-entity scale and stable management support a positive credit view. Approval is recommended with routine monitoring of cash flow and operational metrics to safeguard ongoing credit quality.

PARAGON EXECUTIVE SOLUTIONS LTD - Analysis Report

Company Number: SC676552

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: APPROVE
   Paragon Executive Solutions Ltd demonstrates steady growth in turnover and profitability over the last three years, with a significant increase in net assets and working capital in the most recent financial year. The company operates within the micro-account category, maintaining positive net current assets and a healthy equity base. Directors are longstanding and appear stable with no adverse records. The business has no overdue filings and no indications of financial distress. Based on these factors, the company is considered creditworthy for typical SME credit facilities, subject to standard due diligence.

2. Financial Strength:
   The company’s balance sheet shows robust improvement, with net assets rising from £8,824 in 2022 to £29,847 in 2023. Total current assets increased by approximately 30%, supported by a large prepayment/accrued income figure (£10,743), reflecting sound financial management and potentially prepaid contracts or retained income. Fixed assets remain modest (£1,325), consistent with a service-oriented consultancy business. The equity base is strong relative to liabilities, with no long-term debt reported. The shareholder funds align with net assets, indicating no hidden liabilities.

3. Cash Flow Assessment:
   Paragon has positive net current assets of £28,522 as of the latest year-end, indicating good short-term liquidity and working capital coverage. Current liabilities decreased from £15,845 to £12,576, improving the working capital position. Staff costs and other charges are well controlled relative to turnover, supporting operating cash flow. No off-balance-sheet liabilities or contingent exposures are disclosed, reducing risk of unexpected cash demands. The company’s ability to generate profit (£22,815 in 2023) supports ongoing operational cash inflows.

4. Monitoring Points:

• Maintain close observation of cash conversion cycles and debtor ageing to ensure current assets remain liquid.
• Monitor turnover trends relative to rising staff costs to avoid margin compression.
• Review prepayments and accrued income composition to verify sustainability of revenue recognition.
• Watch for any changes in director status or control that could affect governance or operational continuity.
• Ensure continued timely filing of accounts and confirmation statements to avoid compliance risks.