Company Number: OC441399

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Proxim Management LLP is a recently incorporated limited liability partnership (March 2022) that shows a small scale operation with no employees and limited turnover information disclosed. The latest accounts for the year ended 31 March 2024 reveal a net liability position of £27,714, a decline from a net asset position of £13,611 the previous year. This negative equity position and net current liability indicate a weak financial base. The company has hire purchase debts secured against fixed assets (£64,814), which exceed its tangible asset carrying value (£64,391), showing tight asset coverage and potential liquidity strain. While the company is not overdue on filings and management appears stable with two designated members holding significant control, the financial position suggests the business is in an early growth or investment phase but not yet financially robust. Credit approval may be considered with conditions such as a lower exposure limit, regular financial monitoring, and possibly personal guarantees or collateral to mitigate credit risk.

2. Financial Strength:
   The balance sheet shows fixed assets of £64,391 mainly in motor vehicles and computer equipment, financed largely through secured hire purchase contracts (£64,814). Current assets are minimal (£202 cash; no debtors as at 2024 year-end) and current liabilities stand at £40,566, leading to net current liabilities of £40,364. The company’s total liabilities exceed its total assets, resulting in negative net assets of £27,714. The member loans relate to profit allocations and rank pari passu with unsecured creditors on winding up, offering no additional security cushion. Overall, the financial strength is weak, with limited asset backing and working capital deficits.

3. Cash Flow Assessment:
   Cash at bank is very low (£202), and the absence of trade debtors suggests tight cash conversion cycles or low ongoing sales at year-end. The movement from £10,285 cash in the prior year to £202 indicates cash depletion, possibly due to investment in assets or operating losses. Current liabilities exceed current assets significantly, highlighting potential liquidity risk. The company’s ability to meet short-term obligations without additional capital injection or refinancing appears limited.

4. Monitoring Points:

• Monthly or quarterly cash flow and working capital reports to track liquidity trends.
• Monitoring the company’s progress in generating trade debtors and improving current asset levels.
• Assessment of utilization and repayment schedules on hire purchase agreements and member loans.
• Watch for any changes in management or control that may impact governance.
• Review of upcoming filings and any changes in business scale or operational structure.