PAUL RACKHAM STRATEGIC SUPPORT LIMITED

Executive Summary

Paul Rackham Strategic Support Limited maintains a positive net asset and working capital position, but recent declines warrant caution. The company’s liquidity appears sufficient for current obligations, though reliance on director loans and reduced net assets suggest monitoring is needed. Conditional approval is advised pending regular review of cash flow and director loan status.

PAUL RACKHAM STRATEGIC SUPPORT LIMITED - Analysis Report

Company Number: 12715698

Analysis Date: 2025-07-20 13:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Paul Rackham Strategic Support Limited demonstrates a positive net asset position and consistent working capital, indicating an ability to meet short-term obligations. However, the significant decrease in net assets and net current assets in the latest year, along with director loans outstanding, suggests some liquidity pressure or unusual transactions that require monitoring. Approval is recommended with conditions focusing on updated cash flow forecasts and clarity on director loan arrangements.

2. Financial Strength:
   The company is categorized as micro and holds net assets of £16,129 as of 31 July 2024, down from £30,702 the previous year. The reduction is primarily driven by a sharp decline in net current assets (£15,662 in 2024 vs. £29,522 in 2023). Fixed assets are minimal (£467), indicating limited investment in long-term assets, typical for a consultancy. The balance sheet shows no significant long-term liabilities, and shareholder funds equal net assets, reflecting no external equity dilution.

3. Cash Flow Assessment:
   Current assets (£33,539) comfortably exceed current liabilities (£18,369), giving a current ratio of approximately 1.82x, which is adequate for short-term liquidity. However, a notable element is the director loan balance: the director has reduced the loan from £12,515 to £1,996 during the year, indicating some repayment activity but also reliance on director advances. The prepayments and accrued income figure of £492 is minor compared to prior year (£18,896), which may reflect changes in revenue recognition or billing cycles affecting working capital. No audit was required, which is standard for micro-entities but limits external assurance.

4. Monitoring Points:

• Continued reduction or stabilization of director loans and impact on liquidity.
• Cash flow trends and ability to maintain positive net current assets given recent declines.
• Revenue and profitability trends (not detailed here) to assess sustainable cash generation.
• Timely filing of accounts and confirmation statements (currently up to date).
• Any changes in business activity or client base given the consultancy sector’s susceptibility to economic changes.