SAHARA ACCOUNTANCY LTD

Executive Summary

Sahara Accountancy Ltd displays a stable and improving financial position with positive net assets and strong working capital. The company is well managed under a single director with no compliance issues or adverse records. Credit approval is recommended with routine monitoring of financial growth and liabilities.

SAHARA ACCOUNTANCY LTD - Analysis Report

Company Number: 12414328

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: APPROVE. Sahara Accountancy Ltd demonstrates a stable financial position with positive net assets and working capital growth over the past three years. The company is small (micro category) and operates in a low-risk industry (accounting/bookkeeping). Director control is centralized and consistent, with no adverse conduct records reported. The absence of overdue filings and the company’s active status further support creditworthiness. Given the modest scale and limited financial complexity, the risk is low to moderate, making credit approval appropriate.

2. Financial Strength: The balance sheet reflects improving net assets, rising from a negative position in 2020 (£-3,117) to a positive £8,614 in 2024. Current assets have increased steadily (£3,823 in 2020 to £24,698 in 2024), while current liabilities have remained manageable (£6,940 in 2020 to £9,035 in 2024). The company shows a solid net current asset position (£17,649 in 2024), indicating healthy short-term financial stability. Shareholders’ funds are positive and increasing, evidencing retained earnings growth and sound equity base.

3. Cash Flow Assessment: The company maintains a comfortable liquidity buffer with net current assets significantly positive. Current assets exceed current liabilities by a factor of nearly 2.7 times in 2024, indicating good short-term liquidity and working capital adequacy. While detailed cash flow statements are not provided, the consistent growth in current assets and controlled liabilities suggests the company can service its short-term obligations and finance operations without liquidity strain.

4. Monitoring Points:

• Monitor continued growth in net assets and working capital to ensure sustained financial health.
• Watch for any increase in liabilities, especially long-term debt, which could affect leverage.
• Track director’s management of expenses and profitability as the company scales.
• Confirm ongoing timely filing of accounts and regulatory returns to avoid compliance risks.
• Given the small scale, monitor market conditions impacting demand for accounting services and any shifts in client base or payment terms.