Company Number: 13161490

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: APPROVE
   Selborne Advisory Limited is a micro-entity management consultancy established in 2021 with a stable financial position and positive net assets. The company shows consistent growth in net current assets and shareholders’ funds over recent years, indicating sound financial management and capacity to meet short-term obligations. There is no indication of financial distress or overdue filings, and current liabilities remain well covered by current assets, supporting debt servicing ability.

2. Financial Strength:
   The balance sheet reflects a healthy liquidity position with net current assets improving from £3,651 in 2024 to £9,573 in 2025. The company holds no fixed assets, consistent with its consultancy business model, minimizing depreciation impact. Shareholders’ funds have increased steadily from £3,651 in 2024 to £9,573 in 2025, demonstrating retained earnings growth and capital stability. The low share capital (£2) is not a concern given the micro-entity status and equity build-up through reserves.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables, sufficient to cover current liabilities by a ratio exceeding 1.9x in 2025, indicating comfortable short-term liquidity. Working capital has more than doubled year-on-year, suggesting improving operational cash flow management. The single-employee structure supports low overheads, reducing cash burn risk. No off-balance-sheet liabilities or contingent risks were disclosed.

4. Monitoring Points:

• Maintain oversight on turnover trends as the latest turnover figure (2024) was £54,593, down from £80,643 in 2022; monitoring revenue recovery or stability is critical.
• Watch current liabilities growth to ensure they do not accelerate faster than assets, preserving liquidity.
• Verify ongoing compliance with filing deadlines to avoid penalties and maintain credit standing.
• Monitor reliance on single director and employee for operational continuity and risk diversification.