Company Number: 13959459

Analysis Date: 2025-07-19 12:06 UTC

1. Credit Opinion: APPROVE with caution. PRIME (RC) LTD is a young company (incorporated 2022) operating in quantity surveying and real estate management. The latest accounts (year ended 31 March 2024) show an improving financial position with net assets nearly doubling to £101k from £59k the year before, reflecting growth in working capital and retained earnings. The company has no adverse filing history, no liquidation or insolvency issues, and the sole director holds 75-100% ownership, indicating stable control. However, the business is still small scale (Total Exemption Full accounts category) and dependent on the director’s ongoing involvement and the real estate market conditions. Credit facilities should be extended with monitoring of cash flow and debtor collections.

2. Financial Strength: The balance sheet shows modest fixed assets (£26k) primarily office equipment and motor vehicles, with intangible goodwill of £7k amortised over 10 years. Current assets improved significantly to £391k from £245k, mainly due to increased cash (£132k vs £0.4k) and steady trade debtors (£41k), supplemented by other debtors (£217k). Current liabilities rose from £214k to £311k largely through taxation and social security (£216k) and other creditors (£91k). Net current assets of £79k and net assets of £101k reflect a positive equity position with no long-term liabilities. The director’s loan balance of £217k was repaid within 9 months after year-end, indicating management's intention to maintain balance sheet strength. Overall, the company demonstrates improving financial health with adequate equity cushion.

3. Cash Flow Assessment: Cash at bank increased markedly to £132k by 31 March 2024, providing short-term liquidity. The company shows positive working capital (£79k), which supports operational liquidity. Trade debtor levels are moderate and appear collectible given the nature of the business. The repayment of a significant director loan post year-end reduces financial risk. However, the substantial tax and social security creditor suggests cash outflows will be needed soon, so ongoing liquidity should be monitored closely. Given the company’s size and early stage, cash flow volatility is a risk, but current liquidity appears sufficient.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure working capital remains positive.
• Cash flow trends, particularly around tax payments and creditor settlements.
• Profitability metrics once full income statements are available, to assess operational sustainability.
• Director involvement and any changes in ownership or business strategy.
• Market conditions in quantity surveying and real estate management sectors that could impact revenues.
• Timely filing of accounts and confirmation statements to avoid compliance risks.