PROACTIVE APPROACHES GROUP LIMITED

Executive Summary

Proactive Approaches Group Limited demonstrates marginal improvement in equity and working capital but remains financially fragile with very low cash and reliance on director loans. The company can be conditionally approved for credit subject to close liquidity monitoring and confirmation of sustainable cash flow. Ongoing vigilance is needed to ensure timely repayments and avoid cash flow stress.

PROACTIVE APPROACHES GROUP LIMITED - Analysis Report

Company Number: 13021076

Analysis Date: 2025-07-20 14:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Proactive Approaches Group Limited is a very small private limited company showing modest balance sheet growth and no overdue filings. However, the company’s financial position is extremely tight with minimal net current assets (£68) and very low cash (£127). The large debtor balance is primarily director’s current accounts, which are repaid shortly after year-end but indicate limited external trade receivables. The company’s ability to meet unforeseen short-term obligations or service external debt is limited. Approval is conditional on continued close monitoring of liquidity and confirmation of stable or improving cash flow from operations. The director’s advances and repayments suggest some internal financial support, but this may not be sustainable long term.

2. Financial Strength:
   The company holds minimal fixed assets (£100) and relies heavily on current assets, mainly debtors (£19,761). Current liabilities nearly match current assets (£19,820), resulting in a negligible net working capital position (£68). Shareholders’ funds have improved slightly to £168 from £99 last year, indicating a small retained earnings accumulation. The balance sheet shows no external borrowings and a low share capital (£100). Overall, the financial strength is weak due to low equity, minimal cash resources, and reliance on director-related balances.

3. Cash Flow Assessment:
   Cash at bank is very low (£127), with working capital almost balanced. Debtors are largely amounts owed by the director and related parties, which are repaid within months after the year end, suggesting tight cash flow management but limited external cash generation. The director’s current account movements (advances and repayments) indicate reliance on internal funding for liquidity. There is no evidence of significant cash reserves or external financing, which may restrict operational flexibility and the ability to absorb shocks.

4. Monitoring Points:

• Liquidity position, especially cash balances and timing of debtor collections
• Director’s advances and repayments to assess ongoing financial support
• Growth or diversification of external trade receivables beyond director-related balances
• Timely settlement of current liabilities and tax obligations (noting a £15,820 tax creditor at year-end)
• Any changes in business activity or management that might impact cash flow or balance sheet stability