Company Number: 14720643

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: APPROVE
   Sensational CMO Limited demonstrates a solid and improving financial position for a micro-entity within the management consultancy sector. The company is active with timely filings and no overdue returns, indicating sound governance. The director also holds full control, suggesting aligned decision-making. The increase in net assets and net current assets over the last two years supports the company’s ability to meet its short-term obligations and service credit facilities. Given its early stage (incorporated 2023) and steady growth, credit approval with standard monitoring is advisable.

2. Financial Strength:
   The balance sheet shows positive trends. Fixed assets are minimal (£2,250 in 2025) but expected for a consultancy. Current assets have more than doubled from £30,689 (2024) to £69,491 (2025), while current liabilities have increased moderately from £21,239 to £44,997, resulting in net current assets rising from £9,450 to £24,494. Net assets have increased from £11,430 to £25,724, reflecting retained earnings or capital injections. The company holds a positive equity base with shareholders’ funds equal to net assets, indicating no hidden liabilities. The micro-entity status means limited disclosure but the available data suggests financial stability and prudent management.

3. Cash Flow Assessment:
   The strong increase in current assets, likely driven by cash and receivables, exceeds the rise in current liabilities, providing a comfortable liquidity position with net working capital positive at £24,494. This surplus indicates the company should have sufficient short-term liquidity to service operational costs and debt obligations. The absence of audit exemption indicates reliance on micro-entity provisions; however, no cash flow statement is provided. The working capital position, combined with the director’s full control and oversight, suggests manageable cash flow risk.

4. Monitoring Points:

• Monitor the growth in current liabilities relative to current assets to ensure working capital remains positive.
• Review timely filing of accounts and confirmation statements to maintain compliance.
• Track profitability and cash generation in future filings to confirm continued financial health and debt service capacity.
• Observe director conduct and any changes in ownership/control that could affect governance.
• Watch for any change in trading conditions in the consultancy sector that could impact revenues.