Company Number: 14094506

Analysis Date: 2025-07-20 13:00 UTC

1. Credit Opinion: APPROVE
   Samuel Ingham Ltd demonstrates strong financial health for a company incorporated in 2022. The company has shown consistent profitability with retained earnings increasing from approximately £109k to £178k in one year, indicating positive business growth and sound financial management by the sole director and significant shareholder. The net current assets position is robust with low current liabilities relative to current assets, suggesting an ability to meet short-term obligations comfortably. There is no indication of financial distress or adverse director conduct. Given the company's demonstrated capacity to generate profit and maintain liquidity, it is creditworthy for typical SME lending facilities, subject to normal monitoring.

2. Financial Strength:

• Net assets improved from £109,291 (May 2023) to £178,458 (May 2024), driven by retained profits.
• Shareholders' funds equal net assets and reflect a strong equity base for the company size.
• Current assets (£200k) exceed current liabilities (£21.8k) by a significant margin, providing a net working capital buffer of £178k.
• Fixed assets are not reported, indicating the business is likely service-oriented with minimal capital investment risk.
• Debtor balances are stable but constitute a large portion of current assets (over 60%), which entails some credit risk depending on debtor payment reliability.

3. Cash Flow Assessment:

• Cash at bank increased from £44.6k to £75.3k year-on-year, indicating improved liquidity.
• Current liabilities decreased significantly from £68.7k to £21.8k, improving short-term solvency.
• The company has a healthy cash conversion cycle, but the sizable debtor balance should be monitored to ensure timely collection.
• No overdrafts or short-term borrowing are reported, suggesting reliance on internally generated funds.
• Director advances have been repaid substantially, indicating good cash discipline and no reliance on director loans.

4. Monitoring Points:

• Monitor debtor aging regularly to mitigate risk of slow payments impacting liquidity.
• Watch for any increases in current liabilities that could strain working capital.
• Track profitability trends to confirm continued positive cash flow generation.
• Review any changes in director advances or related party transactions to ensure no hidden funding risks.
• Observe any significant changes in business activity or industry conditions affecting security dealing (SIC 64991).