PROJECT PLANNING AND DEVELOPMENT CONSULTANTS LTD

Executive Summary

PROJECT PLANNING AND DEVELOPMENT CONSULTANTS LTD has shown marked financial improvement within two years of incorporation, with strong liquidity and a positive net asset base. Its ability to meet short-term liabilities and growing equity position support a credit approval decision. Ongoing monitoring of cash flow and profitability is advised to confirm sustained business performance.

PROJECT PLANNING AND DEVELOPMENT CONSULTANTS LTD - Analysis Report

Company Number: SC736521

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: APPROVE
   PROJECT PLANNING AND DEVELOPMENT CONSULTANTS LTD demonstrates a strong improvement in its financial position over the past year, moving from a net current liability position in 2023 to a healthy net current asset position in 2024. The company shows adequate working capital and net asset growth, indicating an ability to service short-term obligations. No overdue filings or signs of distress are noted. Given the company’s young age (incorporated in 2022) and improving financial metrics, credit approval with standard monitoring is recommended.

2. Financial Strength:
   The company's net assets have increased substantially from £1,155 in 2023 to £14,804 in 2024. This is driven primarily by an increase in cash balances (from £4,963 to £19,256) and the recognition of debtors (£1,200). Fixed assets are minimal and stable, reflecting limited capital intensity consistent with consultancy activities. The equity base is small but growing, reflecting retained earnings rather than fresh capital injection. Overall, the balance sheet shows sound liquidity and a positive equity position with no significant liabilities beyond short-term trade creditors.

3. Cash Flow Assessment:
   Cash at bank and in hand increased nearly fourfold in the latest year, providing a strong liquidity buffer. Net current assets stand at £12,964, indicating working capital adequacy to cover short-term liabilities (£7,492). The company’s positive cash position and minimal reliance on external debt suggest good short-term cash flow management. Absence of long-term debt reduces financial risk. Cash flow appears sufficient to support normal operating cycles and potential modest credit facilities.

4. Monitoring Points:

• Continue monitoring cash flow trends and receivables collection to ensure liquidity is maintained.
• Watch for any significant changes in current liabilities that might strain working capital.
• Track profit and loss performance when available to assess ongoing profitability and retained earnings growth.
• Monitor director conduct and compliance filings to ensure regulatory adherence given company’s young lifecycle.