SACKS JONES O'NEILL ARCHITECTS LTD

Executive Summary

Sacks Jones O'Neill Architects Ltd demonstrates a sound initial financial position with positive net assets and strong working capital for its micro-entity size. As a newly formed company, credit approval is suitable but should be conditional on monitoring of trading performance and liquidity going forward. The company currently appears capable of meeting short-term financial obligations with limited risk.

SACKS JONES O'NEILL ARCHITECTS LTD - Analysis Report

Company Number: 15399978

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: APPROVE with caution. Sacks Jones O'Neill Architects Ltd is a newly incorporated private limited company operating in the architectural sector. The company shows a solid initial financial footing with positive net assets and working capital. However, given its very recent establishment (incorporated January 2024) and micro-entity status, operational track record is limited. Credit approval can be given for modest facilities but should be conditional on ongoing monitoring of trading performance and cash flow generation as the business establishes itself.

2. Financial Strength: The balance sheet as at 31 March 2025 reveals net assets of £21,292, entirely composed of shareholders’ funds. Fixed assets are minimal (£1,403), reflecting likely office equipment or software, appropriate for a service business. Current assets (£26,607) exceed current liabilities (£8,097), resulting in a strong net current asset position of £19,889, indicating good short-term financial stability. The company’s capital base is modest but adequate for its micro size and initial stage.

3. Cash Flow Assessment: Current assets dominated by cash and receivables (debtors) suggest reasonable liquidity. The net working capital of nearly £20k supports the company’s ability to meet short-term obligations comfortably. With only two employees on average, overhead costs should be manageable. However, absence of detailed profit and loss data and cash flow statements limits visibility on operating cash inflows and outflows. Therefore, close attention should be paid to future cash flow reports to ensure consistent positive liquidity.

4. Monitoring Points:

• Timely filing of full accounts and confirmation statements.
• Revenue growth and profit margins as trading matures.
• Maintenance of positive net current assets and cash balances.
• Credit exposure to clients and debtor ageing to avoid cash flow strain.
• Directors’ ongoing involvement and any changes in key management or ownership.
• Impact of economic conditions on architectural services demand.