Company Number: 15127441

Analysis Date: 2025-07-20 12:32 UTC

1. Credit Opinion: APPROVE with conditions
   SW Factory Limited is a newly incorporated private limited company operating as an advertising agency. The company has filed its first set of accounts on time, showing a positive net asset position and modest working capital. Though the company is in an early stage with limited trading history and small scale, there is no indication of financial distress or governance issues. However, given the short trading period and limited financial data, credit approval should be conditional on periodic review of trading performance and cash flow stability over the next 12 months.

2. Financial Strength:
   The balance sheet as at 30 September 2024 shows total assets of £3,865 (fixed assets £421, current assets £3,444) against current liabilities of £660, resulting in net current assets of £2,784 and net assets of £3,205. Shareholders' funds stand at £3,205, indicating the company is equity financed with no long-term debt. The tangible fixed assets consist mainly of computer equipment with appropriate depreciation charged. The company’s small size and exemption from audit are consistent with its classification as a micro-entity. Overall, the balance sheet reflects a solid capital base relative to liabilities with no gearing.

3. Cash Flow Assessment:
   Current assets are comprised entirely of cash at bank (£3,444), and current liabilities are limited (£660), suggesting a strong liquidity position with a current ratio above 5. The positive net current assets indicate sufficient working capital to meet short-term obligations. No trade debtors or stock are reported, highlighting minimal operational complexity and limited credit risk from customers at present. The company has no reported borrowings, lowering liquidity risk. Monitoring cash flow will be important as trading develops.

4. Monitoring Points:

• Regular review of turnover and profitability as trading history builds, including cash generation from operations.
• Watch for any increase in liabilities or credit exposure that could impact liquidity.
• Monitor directors’ changes and corporate governance, given two directors resigned recently.
• Assess any concentration risk related to customer base or key suppliers as business grows.
• Keep track of compliance with filing deadlines for accounts and confirmation statements.