SAILING TOWARDS LIGHT LIMITED

Executive Summary

Sailing Towards Light Limited is a newly established micro-entity with a modest but positive balance sheet and working capital position. Given the company's early stage and limited financial history, credit should be extended cautiously with conditions focusing on monitoring operational performance and financial compliance. The business shows initial financial stability but requires ongoing review to assess growth and cash flow sustainability.

SAILING TOWARDS LIGHT LIMITED - Analysis Report

Company Number: 14720335

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sailing Towards Light Limited is a newly incorporated micro-entity with limited financial history. The company shows positive net current assets and net assets, indicating a modest but stable financial base. However, given its very recent establishment (just over one year) and small scale (one employee, minimal fixed assets), the business creditworthiness is still unproven. Approval is conditional on ongoing monitoring of financial performance and timely filing of accounts and returns.

2. Financial Strength:
   The balance sheet as of 31 March 2024 shows total fixed assets of £630 and current assets of £5,031 against current liabilities of £3,166, resulting in net current assets of £1,865. After accounting for accruals/deferred income of £720, net assets stand at £1,775, fully represented by shareholders’ funds. The company has no long-term liabilities. The financial position suggests modest capitalisation and a positive working capital position, but scale is very small and financial buffers are limited.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables sufficient to cover short-term liabilities, resulting in a positive net working capital of £1,865. The company’s ability to meet immediate obligations appears adequate. However, absence of detailed cash flow statements and the early stage of operations limit insight into cash generation capacity and operational liquidity. Close attention should be paid to cash flow trends as the business develops.

4. Monitoring Points:

• Timely filing of future accounts and confirmation statements to ensure compliance and financial transparency.
• Growth in turnover and profitability to build retained earnings and strengthen net assets.
• Liquidity and working capital management to maintain positive cash flows and meet liabilities.
• Continued compliance with regulatory and financial reporting requirements.
• Any changes in ownership or director appointments that could impact governance.