S3 PROJECT CONSULTING LTD

Executive Summary

S3 Project Consulting Ltd is a start-up management consultancy showing initial capital support and modest working capital surplus. The company’s financials reflect early-stage operations with limited trading history, resulting in constrained ability to service debt currently. Credit approval is conditional on demonstrated revenue growth and stronger cash flow visibility in future periods.

S3 PROJECT CONSULTING LTD - Analysis Report

Company Number: 14357028

Analysis Date: 2025-07-20 15:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   S3 Project Consulting Ltd is a newly established management consultancy (incorporated late 2022) with limited trading history. The company shows modest net current assets (£1,322) and positive shareholders’ funds (£1,519) as of March 2024, indicating a start-up phase with some capital backing. However, the small scale of operations, absence of turnover figures, minimal tangible fixed assets, and limited working capital mean the company’s ability to service debt is currently constrained. Credit approval is therefore conditional on obtaining further evidence of sustainable revenue generation and positive cash flow forecasts before extending significant credit facilities.

2. Financial Strength:
   The balance sheet is very lean, with total net assets of £1,519 and current assets primarily consisting of cash (£3,693) and minimal debtors (£100). Current liabilities stand at £2,471, mainly tax and other creditors, leaving a modest working capital surplus. The company recently acquired fixed assets (£197), reflecting initial investment. Shareholders’ funds have grown from £100 at incorporation to £1,519, demonstrating some capital injections or retained earnings. Overall, the financial position is stable but fragile, typical for a start-up with limited business history and no employees.

3. Cash Flow Assessment:
   Cash on hand (£3,693) is adequate to meet immediate short-term liabilities (£2,471). The net current asset position of £1,322 indicates positive working capital, essential for operational liquidity. However, the absence of detailed income or cash flow statements restricts assessment of operational cash generation. Given zero employees and minimal turnover data, cash flow sustainability depends heavily on ongoing director funding or early client payments. Monitoring cash conversion cycles and client payment patterns is critical.

4. Monitoring Points:

• Turnover and profitability growth in subsequent reporting periods to confirm business viability.
• Timely settlement of creditors and tax obligations to assess liquidity management.
• Cash flow statements and forecasts to evaluate ongoing operational cash generation.
• Any increase in fixed assets or staff numbers that may impact working capital needs.
• Directors’ continued financial support or external funding arrangements.