Company Number: 13991287

Analysis Date: 2025-07-20 15:56 UTC

1. Credit Opinion: APPROVE with conditions
   Positive Response Media Limited is a micro-entity operating in media representation services since 2022. The company has demonstrated modest but consistent growth in net current assets and net assets over its three years of operation. The current director, Neil Parsons, who owns the majority equity and control, appears to provide stable management. However, the company remains very small with limited financial resources and only one employee, which constrains operational scale and resilience. Lending could be approved provided limits are conservative and subject to periodic review of updated accounts and cash flow performance.

2. Financial Strength:
   The balance sheet shows steady improvement from net assets of £552 in 2024 to £3,648 in 2025. Current assets grew to £22,941 while current liabilities increased moderately to £19,293, resulting in positive working capital of £3,648. There are no fixed assets reported, typical for a service-based micro business. The shareholder funds match net assets, indicating no external equity or long-term debt. Overall, financial strength is modest but improving, with no indications of distress.

3. Cash Flow Assessment:
   Working capital is positive and increased over the last year, indicating the company can cover short-term liabilities with current assets. The small scale (one employee) suggests limited overheads, which supports liquidity. However, the absolute cash buffer is small, so the company may be vulnerable to fluctuations in cash flow or delayed receivables. Regular monitoring of debtor days and creditor payments is advised to ensure ongoing liquidity.

4. Monitoring Points:

• Continued growth in net current assets and net assets in future filings.
• Cash flow trends and debtor collection efficiency.
• Any changes in shareholder control or director appointments impacting governance.
• Emerging liabilities or increased operational costs that could erode working capital.
• Confirmation of business activity and contracts underpinning revenue generation.