RED EGG CONSULTING LTD

Executive Summary

RED EGG CONSULTING LTD is a newly formed micro enterprise with a solvent balance sheet and positive working capital, indicating initial financial stability. Given the short operating history, credit approval should be conditional on ongoing financial performance and compliance with filing requirements. Continued monitoring of liquidity and growth metrics will be essential to confirm creditworthiness over time.

RED EGG CONSULTING LTD - Analysis Report

Company Number: 14863094

Analysis Date: 2025-07-20 17:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RED EGG CONSULTING LTD is a newly incorporated micro private limited company with modest assets and liabilities. The company shows a positive net asset position (£33,452) and working capital (£56,483 current assets vs. £33,178 current liabilities), indicating a reasonable short-term liquidity buffer. However, given the company’s very recent establishment (less than two years) and the limited financial history, the credit risk is moderate. Approval is recommended subject to ongoing monitoring of trading performance and timely filing of future accounts and returns.

2. Financial Strength:
   The company’s balance sheet as of 31 May 2024 shows fixed assets of £1,875 and current assets of £56,483, mostly comprising cash or equivalents and prepayments. Current liabilities stand at £33,178, resulting in net current assets (working capital) of approximately £23,305, which is adequate for a micro enterprise. Shareholders’ funds of £33,452 reflect initial capital and retained earnings from the start-up period. The company has no employees reported, suggesting a lean operational model. The financial structure is simple and solvent, but limited in scale.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a comfortable margin, implying the company can meet its short-term obligations. Prepayments and accrued income of £8,272 may represent contracts or services paid in advance, which could impact liquidity if not realised timely. Without detailed profit and loss or cash flow statements, it is unclear how robust the cash inflows are, but the absence of overdrafts or significant short-term debt is positive. The company’s liquidity position is currently stable but should be monitored as trading develops.

4. Monitoring Points:

• Timely submission of annual accounts and confirmation statements to avoid regulatory penalties.
• Evidence of growing turnover and profitability in the next financial year to support debt servicing.
• Management’s ability to maintain positive cash flow and working capital as the company expands.
• Watch for any director changes or control shifts that could impact governance or financial policy.
• Monitor any increase in liabilities relative to assets that could weaken solvency.