PROJECT SPHERE CONSULTING LTD

Executive Summary

Project Sphere Consulting Ltd is a financially stable micro-entity with improving net assets and strong liquidity, supporting credit approval at modest levels. The company shows prudent financial stewardship with no long-term debt and positive working capital. Ongoing monitoring is recommended due to limited operating history and micro-entity reporting standards.

PROJECT SPHERE CONSULTING LTD - Analysis Report

Company Number: 13114709

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: APPROVE with monitoring. Project Sphere Consulting Ltd demonstrates solid financial health for a micro-entity with positive net assets and no overdue filings. The company shows steady growth in net assets and working capital, indicating adequate ability to meet short-term obligations and service credit facilities. However, it is a relatively young company with a limited operating history and modest scale, so credit limits should be conservatively sized with ongoing review.

2. Financial Strength: The company’s balance sheet shows net assets increased from £87,475 in 2021 to £175,259 in 2024, reflecting retained earnings and profitable operations. Fixed assets declined slightly but current assets grew significantly, primarily cash or receivables, improving liquidity. Current liabilities rose but remain well covered by current assets, resulting in a strong net current assets position (£126,908 in 2024). No long-term debt is reported, enhancing solvency and reducing financial risk.

3. Cash Flow Assessment: Working capital is positive and increasing, indicating good short-term liquidity management. The company has no reported long-term borrowings, suggesting a low leverage position and no immediate refinancing risk. Average employee count is stable at 2, appropriate for a consultancy micro-entity with limited fixed costs. The absence of audit requirements and reliance on micro-entity accounting standard means detailed cash flow data is limited, so cash flow projections should be requested if larger credit facilities are sought.

4. Monitoring Points:

• Maintain regular review of net current assets and liquidity ratios to ensure continued ability to cover short-term liabilities.
• Monitor any growth in current liabilities or introduction of long-term debt which may affect solvency.
• Track revenue and profit development (not disclosed in detail here) to confirm ongoing profitability and cash generation.
• Review director conduct and company status filings for any adverse changes or compliance issues.
• Monitor business environment for management consultancy sector risks and client concentration.