PW ACCOUNTANCY (HINCKLEY) LTD

Executive Summary

PW Accountancy (Hinckley) Ltd is a financially stable micro-entity with improving net assets and strong liquidity relative to its current liabilities. The company’s financial health and professional management support approval for credit facilities, with ongoing monitoring recommended due to its young operational history. No significant credit risks are apparent at this stage.

PW ACCOUNTANCY (HINCKLEY) LTD - Analysis Report

Company Number: 14189600

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: APPROVE
   PW Accountancy (Hinckley) Ltd demonstrates a solid financial position for a micro-entity, with positive net current assets and shareholders' funds that have increased significantly from £18,635 in 2023 to £43,482 in 2024. The company shows no signs of financial distress, has no overdue filings, and operates in a stable industry (accounting and auditing). The director’s background as an accountant indicates competent financial stewardship. Given the company’s age (incorporated mid-2022) and limited operational history, the credit is best approved with monitoring but without immediate restrictions.

2. Financial Strength:
   The balance sheet indicates a healthy liquidity position. Current assets rose from £47,070 to £71,029, while current liabilities slightly decreased from £28,435 to £27,547, improving net current assets from £18,635 to £43,482. Shareholders’ funds have more than doubled in under two years, reflecting retained earnings or capital injections. No fixed assets are reported, consistent with a service-based micro-entity. Overall, the financial structure is sound, with no reliance on long-term debt.

3. Cash Flow Assessment:
   The company’s net current assets position suggests adequate short-term liquidity to meet liabilities. The absence of employees reduces fixed obligations, improving cash flow flexibility. However, detailed cash flow statements are not available; therefore, the assessment relies on balance sheet data showing increasing working capital. The stable current liabilities level versus rising current assets supports the company’s ability to service operating expenses and potential credit facilities.

4. Monitoring Points:

• Continued growth in net current assets and shareholders’ funds to confirm financial trajectory.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Monitor any changes in liabilities that could strain liquidity.
• Watch for any director or ownership changes that might affect governance or credit risk.
• Review future cash flow statements once available for more precise liquidity evaluation.