PRUDENTIAL RISK SOLUTIONS LTD

Executive Summary

Prudential Risk Solutions Ltd is a newly formed, micro-sized consultancy with a solid initial balance sheet and positive working capital, indicating ability to meet near-term liabilities. The lack of historical trading data warrants cautious credit exposure with ongoing monitoring of financial performance and liquidity. Approval is suitable for limited credit facilities with review intervals aligned to company growth and reporting updates.

PRUDENTIAL RISK SOLUTIONS LTD - Analysis Report

Company Number: 15244016

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: APPROVE with caution. Prudential Risk Solutions Ltd is a newly incorporated micro-entity (incorporated October 2023) operating in management consultancy (SIC 70229). The company shows a positive net asset position and working capital, which supports its ability to meet short-term obligations. However, due to limited trading history and small scale (1 employee), the credit risk is moderate. Approval is recommended for modest credit limits with regular review.

2. Financial Strength: The company’s balance sheet as at 31 March 2025 shows fixed assets of £1,600 and current assets of £27,195 against current liabilities of £12,750, resulting in net current assets (working capital) of £14,445 and overall net assets of £16,045. Shareholders’ funds equal net assets, indicating no long-term debt. This reflects a sound and conservatively financed capital structure, typical for a start-up micro-entity.

3. Cash Flow Assessment: Current assets primarily consist of cash or receivables sufficient to cover current liabilities by a factor of approximately 2:1, indicating adequate short-term liquidity. The positive net current assets suggest the company can manage day-to-day operations and meet creditor demands without liquidity strain. However, absence of historic profit and loss data limits insight into operating cash flow trends.

4. Monitoring Points:

• Track revenue growth and profitability as trading history develops.
• Monitor changes in working capital dynamics and liquidity ratios.
• Review director conduct and corporate governance due to single controller with 75-100% ownership.
• Watch for timely submission of future accounts and confirmation statements to ensure ongoing compliance.