SAMWISE CONSULTING LIMITED

Executive Summary

Samwise Consulting Limited is a newly incorporated management consultancy with a weak balance sheet characterized by negative net assets and significant working capital deficits. The company’s cash position is insufficient to cover current liabilities, and there is no evidence of trading profitability to support credit extension. Given these factors, credit facilities are declined at this stage pending demonstration of improved financial performance and liquidity management.

SAMWISE CONSULTING LIMITED - Analysis Report

Company Number: 14859761

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: DECLINE
   Samwise Consulting Limited shows significant financial weakness with net liabilities of £17,382 as at 31 May 2024. The company has negative working capital of £52,062, indicating current liabilities exceed current assets by a large margin, raising concerns over its ability to meet short-term obligations. Given the company is newly incorporated (May 2023) and reports no turnover or profit figures, its operational viability and cash generation capacity remain unproven. The high current liabilities relative to cash and debtors suggest reliance on external funding or shareholder support. Without evidence of sustainable revenue and improved liquidity, extending credit would carry elevated risk.

2. Financial Strength:
   The balance sheet shows total fixed assets of £34,680 against current assets of £72,305, mostly cash (£66,023), which is positive. However, current liabilities of £124,367 create a working capital deficit of £52,062 and overall net liabilities of £17,382. The negative shareholders’ funds reflect accumulated losses or initial shareholder funding shortfalls. The asset base is modest and largely composed of tangible fixed assets (motor vehicles and computer equipment). Absence of long-term liabilities is noted, but the liquidity mismatch undermines financial strength.

3. Cash Flow Assessment:
   Cash on hand (£66,023) covers only about 53% of current liabilities, implying potential cash flow stress. Trade debtors are minimal (£6,282), so collections will not materially improve liquidity. The large current creditor balance (£120,894) might represent accrued expenses or financing arrangements. Without turnover or profit data disclosed, there is no visibility on operating cash inflows. The negative net current assets position signals potential difficulty in meeting short-term payments without additional capital injection or refinancing.

4. Monitoring Points:

• Monitor monthly cash flow statements and accounts payable aging to assess liquidity trends.
• Track turnover and profit development to verify business viability and capacity to generate internal funds.
• Watch changes in current liabilities and any new borrowing or shareholder funding.
• Engage with management on plans to improve working capital and reduce creditor balances.
• Review subsequent annual accounts for turnaround in net asset position and positive equity generation.