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.