Company Number: 13212304

Analysis Date: 2025-07-29 13:54 UTC

1. Credit Opinion: DECLINE
   Sagedale Consulting Limited demonstrates a weak financial position with persistent net liabilities and negative net current assets in the latest financial year. The company’s inability to generate positive working capital and net assets signals challenges in meeting short-term obligations. The significant increase in current liabilities and long-term creditors exacerbates liquidity risk. Given these indicators, the company currently lacks sufficient financial strength and cash flow to service additional credit facilities without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reveals deteriorating financial health. Net assets declined from a positive £33 in 2021 to a negative £3,390 in 2024. The drop is driven by increasing creditors falling due after more than one year (£2,800) and rising current liabilities exceeding current assets by £590. Fixed assets have been fully impaired or disposed of, and the company relies heavily on liabilities to finance its operations. Shareholders funds are negative, reflecting accumulated losses and insufficient equity capitalization.

3. Cash Flow Assessment:
   Current assets of £769 against current liabilities of £2,800 indicate a marked liquidity shortfall, with a negative working capital of £590. This suggests cash flow constraints and insufficient liquid resources to cover imminent debts. The company’s single employee count and micro-accounting status imply limited operational scale, which may constrain revenue generation. The absence of audit or detailed profit and loss data restricts precise cash flow analysis but the balance sheet structure points to ongoing cash flow pressure.

4. Monitoring Points:

• Watch for improvements in net current assets and net liabilities position in upcoming accounts.
• Monitor creditor terms and any restructuring of long-term liabilities.
• Track changes in cash balances and operating cash flow generation if reported.
• Evaluate any capital injections or shareholder support to restore equity.
• Assess director statements or disclosures for business outlook and recovery plans.