SEMPER LTD

Executive Summary

SEMPER LTD demonstrates positive net assets and working capital, supporting short-term creditor protection. However, declining turnover and liquidity levels indicate caution. Credit should be extended conditionally with vigilant monitoring of cash flow and profitability trends to ensure financial resilience before increasing exposure.

SEMPER LTD - Analysis Report

Company Number: 13115848

Analysis Date: 2025-07-29 19:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SEMPER LTD is a micro-entity operating in management consultancy with modest turnover of £36,000 in the latest year, down from £39,000 previously. The company maintains positive net assets and working capital, indicating an ability to meet short-term liabilities. However, the declining turnover and materially reduced current assets from £59.6k to £27.6k suggest a weakening liquidity position. Given the company’s small scale, limited financial history (incorporated in 2021), and recent decline in financial strength, credit facilities should be cautiously extended with conditions such as regular financial reporting and limits on exposure until a clearer trend of sustainable profitability and cash flow is established.

2. Financial Strength:
   The balance sheet shows net assets of £17,926 as of 31 January 2024, down significantly from £48,520 the prior year. The company holds current assets of £27,648 against current liabilities of £9,722, resulting in positive net current assets of £17,926. This indicates an adequate short-term buffer to cover liabilities. Shareholders’ funds mirror net assets, showing no long-term debt recorded. The very low share capital (£2) and micro-entity status reflect minimal capitalization and a small equity base. The downward trend in net assets and working capital should be monitored, though no signs of insolvency are evident currently.

3. Cash Flow Assessment:
   Direct cash flow data is not provided, but analysis of current assets and liabilities suggests liquidity has tightened notably over the year. The reduction in current assets by over 50% could imply cash depletion or collection issues, raising concerns about operational cash flow sufficiency. Despite this, current liabilities decreased slightly, maintaining positive working capital. The company employs no staff, reducing fixed overheads, but the turnover decline and reduced available liquid assets warrant close scrutiny of cash flow management to ensure ongoing debt service capability.

4. Monitoring Points:

• Turnover and profitability trends in future accounts to confirm business viability and growth.
• Liquidity ratios and working capital levels, particularly current assets versus current liabilities.
• Frequency and consistency of management accounts or interim financial statements to assess cash flow dynamics.
• Any changes in director or ownership structure that could affect governance or financial control.
• Payment performance history with suppliers and creditors to identify emerging financial stress.