SELION ADVISORY LIMITED

Executive Summary

Selion Advisory Limited is a recently formed micro-entity with a clean balance sheet and positive working capital but limited operational history. Credit approval is feasible on a conditional basis with close monitoring of financial performance and liquidity as trading develops. Early-stage risk is mitigated by low liabilities but ongoing assessment of cash flow and profitability is essential.

SELION ADVISORY LIMITED - Analysis Report

Company Number: 15392145

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion: APPROVE with conditions. Selion Advisory Limited is a newly incorporated micro-entity with minimal operational history (just over one year). The company shows a positive net asset position and no overdue filings, which is good. However, absence of revenue and profit data, and no employed staff, limits the assessment of ongoing cash generation capacity. Given these factors, credit approval is reasonable for modest facilities, but should be conditional upon periodic financial updates to monitor trading progress and cash flow development.

2. Financial Strength: The balance sheet as of 31 January 2025 shows current assets of £33,688 against current liabilities of £7,696, yielding net current assets of £25,992. After accruals and deferred income of £574, net assets stand at £25,418, fully represented by shareholders’ funds. The company has no long-term liabilities or fixed assets reported, which is typical for a micro-entity startup. The capital structure is clean with no apparent debt burden, indicating a strong liquidity cushion in the short term. However, the low asset base and lack of trading history imply limited financial strength to absorb shocks.

3. Cash Flow Assessment: Cash and current assets exceed current liabilities by a healthy margin, indicating adequate working capital at the balance sheet date. There is a small director loan balance of £1,336, net of repayments, which is manageable. No employees and minimal operational activity suggest low cash burn currently. However, the absence of detailed profit and loss or cash flow statements restricts assessment of operational cash generation. The company’s ability to service debt or meet financial obligations will depend on future trading performance and client inflows.

4. Monitoring Points:

• Monitor future filed accounts and confirmation statements for signs of revenue generation and profitability.
• Track cash flow statements or management accounts to assess liquidity trends and working capital management.
• Watch for any director loans or related party transactions that could affect financial stability.
• Review changes in net assets and liabilities to detect any deterioration or improvement.
• Confirm timely filing of accounts and statutory documents to avoid compliance risks.