PSA TRAINING & CONSULTING LTD

Executive Summary

PSA Training & Consulting Ltd has shown a marked improvement in financial health, turning net assets positive with strong working capital by the end of 2024. The company’s liquidity position appears solid, supported by steady current assets and controlled liabilities. Approval for credit is recommended with ongoing monitoring of long-term creditor obligations and cash flow stability due to its small scale and ownership concentration.

PSA TRAINING & CONSULTING LTD - Analysis Report

Company Number: 13785838

Analysis Date: 2025-07-20 17:27 UTC

1. Credit Opinion: APPROVE with conditions

PSA Training & Consulting Ltd is a micro private limited company operating in management consultancy. The company has demonstrated a notable turnaround from prior years, moving from negative net assets (£-236 in 2023) to a positive net asset position (£33,171) by the end of 2024. The current liabilities include a significant long-term creditor balance of £40,000, which appears stable over the years. Given the small size, limited employees (1), and a sole director/owner controlling 75-100% of shares and voting rights, the company shows sound control and governance. However, the company’s credit exposure should be limited due to its micro entity status and reliance on a single individual. Approval is recommended subject to monitoring cash flow and ensuring that long-term creditor arrangements remain manageable.

2. Financial Strength:

• Fixed Assets are minimal (£653 in 2024), consistent with a service-based consultancy.
• Current Assets increased substantially from £51,412 in 2023 to £91,585 in 2024, indicating improved liquidity or higher receivables/cash balances.
• Current Liabilities remain constant at £40,000, suggesting stable short-term obligations.
• Net Current Assets improved from £40,230 in 2023 to £73,903 in 2024, reflecting better working capital management.
• Net Assets moved from a negative position to £33,171, showing an increase in shareholder equity and overall balance sheet health.
• The company carries a £40,000 creditor balance due after one year which must be monitored but has remained static.
• The company’s balance sheet is modest but improving, reflecting a positive financial trajectory.

3. Cash Flow Assessment:

• The increase in current assets alongside stable current liabilities suggests an improved liquidity position.
• Net working capital is strong for a micro company, with nearly double current assets to current liabilities.
• The company’s cash and receivables appear sufficient to meet short-term obligations.
• The presence of long-term creditors at £40,000 is a factor to monitor for refinancing risk or repayment capacity.
• Limited employee count and low fixed assets reduce fixed overheads, potentially supporting cash flow stability.
• No audit was required, and accounts are unaudited, so cash flow details are limited but overall indicators point to reasonable liquidity.

4. Monitoring Points:

• Monitor the status and terms of the £40,000 long-term creditor to manage refinancing or repayment risk.
• Watch cash flow trends and receivables turnover to ensure current assets remain sufficient to cover liabilities.
• Review director financial conduct and company filings for any adverse changes given the company’s dependence on a single controlling director.
• Keep track of any changes in business scale or client concentration that could affect revenue stability.
• Confirm timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Given the micro status, pay attention to any increase in liabilities or negative net asset trends.