POSH NOSH CONSULTING LIMITED

Executive Summary

Posh Nosh Consulting Limited demonstrates a stable but declining financial position with positive net current assets and cash liquidity adequate to cover short-term liabilities. The significant reduction in net assets and debtor balances warrants cautious credit approval with conditions and active monitoring of cash flow and equity trends. The company’s small scale and limited operational footprint suggest some risk exposure but manageable if liquidity is maintained.

POSH NOSH CONSULTING LIMITED - Analysis Report

Company Number: 13014891

Analysis Date: 2025-07-20 14:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Posh Nosh Consulting Limited is an active private limited company operating in the food services sector. The company shows modest net assets and positive net current assets, indicating some short-term liquidity. However, financials reveal a decline in net assets from £59,440 in 2022 to £35,034 in 2023, and a significant reduction in current assets, mainly driven by the loss of debtors (£47,490 in 2022 to zero in 2023). This may indicate slower receivables or a change in business model. Cash remains solid at £72,916, which supports immediate liquidity. The lack of employees and a small share capital (£0.01) suggest a micro/small scale operation with possibly limited operational complexity and financial buffer. Credit approval can be considered but with monitoring and possibly limits given the shrinking equity and reduced debtor balances.

2. Financial Strength:
   The balance sheet shows total net assets of £35k, which is positive but decreased by approximately 41% compared to the prior year (£59k). Tangible fixed assets have decreased slightly, and the company carries no long-term debt visible. Current liabilities have reduced from £95k to £52k, improving the current ratio but this is due to a reduction in trade creditors and tax liabilities rather than increased assets. The company has no reported employees, indicating low overheads but also limited scale. Overall, the financial structure is stable but with declining equity and reduced working capital, suggesting vulnerability to shocks or downturns.

3. Cash Flow Assessment:
   Cash on hand is £72,916, representing a strong liquidity position relative to current liabilities of £52,218, yielding a current ratio of approximately 1.44, which is acceptable. The company moved from having significant trade debtors last year to none this year, which could imply faster cash conversion or write-offs. Net current assets remain positive at £23,198, but down from £44,645 previously. The presence of stock at £2,500 is small but points to some inventory holding. The company’s ability to meet short-term obligations appears sound currently, but the decline in working capital should be monitored.

4. Monitoring Points:

• Continued decline in net assets and shareholders’ funds: Investigate causes and management plans to stabilize or grow equity.
• Absence of debtors in the latest year: Clarify whether this reflects prompt payment, reduced sales on credit, or potential issues collecting receivables.
• Cash flow trends in future filings: Ensure liquidity remains adequate to service obligations.
• Business growth indicators: Turnover and profit figures were not provided; these will be critical to assess going forward.
• Operational scale and management: With no employees and a single director who is a chef by occupation, assess the company’s management capacity and business model sustainability.