PULSE COMPETITIONS LTD

Executive Summary

Pulse Competitions Ltd shows marked improvement in financial health with strong liquidity and positive net assets, supporting its ability to service credit obligations. The micro-entity’s simple structure and growing working capital indicate low credit risk at present. Continued monitoring of cash flows and operational performance is recommended to sustain this trend.

PULSE COMPETITIONS LTD - Analysis Report

Company Number: 13016930

Analysis Date: 2025-07-20 12:02 UTC

1. Credit Opinion: APPROVE
   Pulse Competitions Ltd demonstrates a solid improvement in financial position over the last two years, with a significant increase in net current assets and shareholders’ funds from £4,247 in 2022 to £70,531 in 2023. The company’s business model, retail sales via internet/mail order, typically benefits from low fixed asset requirements and scalable operations. Despite being a micro-entity with no employees, the strong liquidity and positive working capital suggest it can meet short-term obligations and service credit facilities. No overdue filings or director concerns are noted. The credit risk is low at this stage.

2. Financial Strength:
   The balance sheet shows a healthy and improving financial position. Current assets increased substantially from £76,118 to £139,288, while current liabilities decreased slightly from £71,871 to £68,757, resulting in net current assets of £70,531. Total net assets equal £70,531, reflecting retained earnings growth and no long-term liabilities. Share capital is nominal (£1), indicating minimal equity injection but the retained reserves are the main source of equity strength. Absence of fixed assets and employees keeps overheads minimal but may limit asset collateral.

3. Cash Flow Assessment:
   The company maintains good liquidity with net current assets equating to roughly double its current liabilities, implying sufficient short-term cash and receivables to cover payables. The significant growth in current assets suggests improved cash generation or receivables management. However, absence of employees and fixed assets implies reliance on operational cash flows and vendor credit. Monitoring cash conversion cycles and any seasonal fluctuations is advised but current working capital levels are comfortable.

4. Monitoring Points:

• Maintain vigilance on current liabilities and ensure they do not grow disproportionately to current assets.
• Monitor turnover and profitability trends to confirm the sustainability of working capital growth.
• Watch for any changes in director or ownership structure that may impact governance or strategy.
• Confirm timely filing of accounts and confirmation statements continues to avoid regulatory risk.