Company Number: 13910145

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sawdde Consulting Ltd is a micro private limited company engaged in management consultancy. It has a modest but positive net asset position and working capital. However, the company’s financial scale is very small, with net assets under £12k and limited fixed assets, which constrains its borrowing capacity. The directors have maintained up-to-date filings and show stable control. Given the limited financial buffer and small scale, credit facilities could be considered but should be closely monitored, potentially with covenants or limits on exposure.

2. Financial Strength:

• Net assets decreased from £14,633 (2023) to £11,898 (2024), indicating a slight decline in equity.
• Fixed assets are negligible (£147 in 2024) and have decreased, reflecting no significant capital investment.
• Current assets (£49,816) exceed current liabilities (£38,065), resulting in positive net current assets of £11,751, showing adequate short-term liquidity.
• Shareholders’ funds align with net assets, confirming no unusual off-balance sheet liabilities.
• The company’s size and capitalization are minimal, which limits its ability to absorb financial shocks.

3. Cash Flow Assessment:

• Positive net current assets indicate working capital sufficiency to cover short-term obligations.
• Current liabilities are significant relative to total assets but manageable within current assets.
• No detailed cash flow statement is provided, but the stable working capital and absence of overdue filings suggest reasonable liquidity management.
• The small scale means cash flow volatility could significantly impact repayment ability, so ongoing monitoring is advised.

4. Monitoring Points:

• Track net asset trends to identify further equity erosion.
• Monitor current ratio and working capital to ensure liquidity remains positive.
• Assess any changes in director ownership or control that might impact governance.
• Review any increase in liabilities or overdue filings which could signal financial stress.
• Watch for any changes in business activity or sector risks affecting consultancy services.