Company Number: 14554013

Analysis Date: 2025-07-20 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RWD Academy Limited is a newly incorporated private limited company operating in the hairdressing and beauty treatment sector. The financials reflect a very early stage of trading with modest asset base and minimal equity. Net current liabilities (£894) indicate a slight working capital deficiency, mainly due to loans from directors (£3,724). While the company is not in liquidation, the negative working capital and dependence on director loans suggest limited short-term liquidity. However, no overdue filings or compliance issues are noted, and the directors appear engaged and responsible. Credit approval is recommended on a conditional basis, subject to monitoring of cash flow improvement and reduction of director loans.

2. Financial Strength
   The balance sheet as of 31 December 2023 shows total fixed assets of £6,840 (plant and machinery net of depreciation), current assets of £3,382 (including £1,632 cash), and current liabilities of £4,276. The net assets and shareholders’ funds stand at £5,946, indicating a positive equity position despite the working capital shortfall. The use of director loans as current liabilities signals reliance on internal funding rather than external debt. Overall, the financial strength is weak but typical for a start-up company in its first full year of trading.

3. Cash Flow Assessment
   Cash at bank is £1,632 against current liabilities of £4,276, implying limited liquidity to cover immediate obligations. The company has an average of 5 employees, likely contributing to operating expenses that require ongoing cash flow management. The negative net current assets position suggests working capital constraints, which could hinder the ability to meet short-term liabilities without additional funding or improved cash inflows. The director loans provide some buffer but also indicate the need for external cash generation or capital injection.

4. Monitoring Points

• Trend in net current assets and reduction/removal of director loans
• Cash flow from operations and ability to maintain positive liquidity
• Profitability trajectory and accumulation of retained earnings
• Timeliness of future statutory filings and compliance
• Stability and involvement of directors in managing financial obligations
• Any changes in business scale or sector risks impacting revenue