Company Number: 13904970

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Reflex First Aid Training Limited is an active small private company operating in the education sector, specializing in first aid and sports/recreation education. The company shows modest tangible assets and limited net equity, with a small negative working capital position. The directors have provided advances to the company, indicating internal support but also a reliance on director funding. Given the company is relatively new (incorporated in 2022) and has not yet demonstrated strong liquidity or net current asset positions, credit approval should be conditional, requiring close monitoring of cash flow performance and repayment capacity before extending significant credit.

2. Financial Strength:

• Net assets stand at £2,275 as of 31 March 2024, down slightly from £2,367 in the prior year, indicating a stable but very modest equity base.
• Tangible fixed assets of £7,213 (down from £8,102) provide some long-term asset backing.
• Negative net current assets of £3,567 reflect current liabilities (£15,639) exceeding current assets (£12,072), which is a concern for short-term financial stability.
• Provisions amounting to £1,371 reduce net asset value and signify potential contingent liabilities or future outflows.

Overall, the balance sheet is very lean with limited financial strength, typical for a small startup but indicative of vulnerability to cash flow shocks.

3. Cash Flow Assessment:

• Cash in hand and at bank is £10,282, which is a positive liquidity indicator and increased from £9,019 last year.
• Debtors increased to £1,790, suggesting some growth in sales or credit given to customers.
• The company’s current liabilities have grown from £13,960 to £15,639, signaling increased obligations.
• The negative working capital position (-£3,567) suggests potential liquidity stress, although the cash balance provides a buffer for now.
• Directors’ loans of £10,773 indicate reliance on insider funding to support operations; this may affect priority of repayments in a credit event.

The company’s liquidity is marginal but currently manageable, reliant on continued director support and cash collection efficiency.

4. Monitoring Points:

• Monitor cash balances and working capital quarterly to ensure liquidity does not deteriorate further.
• Watch debtor aging and credit risk to confirm timely collections and avoid cash flow strain.
• Track any increase in current liabilities or provisions that could impact liquidity and solvency.
• Review directors’ advances and any changes in related party transactions that may affect financial stability.
• Assess operational performance and revenue growth to verify the company’s ability to build equity and reduce dependency on director funding.