SFWB CONSULTANCY SERVICES LIMITED

Executive Summary

SFWB CONSULTANCY SERVICES LIMITED shows modest financial resilience with improved net assets and working capital but exhibits liquidity concerns due to sharply reduced cash balances and receivables. Credit is conditionally approved with the expectation of close monitoring of cash flow management and operational scale. The company’s stable ownership and compliance record support cautious lending under these conditions.

SFWB CONSULTANCY SERVICES LIMITED - Analysis Report

Company Number: 13056194

Analysis Date: 2025-07-20 18:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SFWB CONSULTANCY SERVICES LIMITED demonstrates a positive net asset position and improved net current assets in their latest accounts. However, a sharp decline in cash balances and debtors from 2022 to 2023, alongside a reduction in employee numbers (from 7 to 1), signals potential operational contraction or restructuring. The company is still active with no overdue filings, and the sole significant controller holds full ownership, indicating stable governance. Credit approval is recommended with conditions, requiring ongoing monitoring of liquidity and receivables collection.

2. Financial Strength:
   The company’s net assets increased modestly from £13,870 in 2022 to £16,980 in 2023, reflecting retained earnings growth despite reduced scale. Fixed assets remain low at £2,036, consistent with a service-oriented consultancy. Current liabilities decreased substantially from £77,987 to £15,286, improving working capital. However, trade debtors fell from £58,040 to £30,226 and cash reserves dropped sharply to only £4, which raises concerns about short-term liquidity and cash management.

3. Cash Flow Assessment:
   Cash at bank and in hand is critically low at £4, which is a liquidity risk. Although net current assets are positive at £14,944, the large proportion of current assets tied up in debtors (£30,226) may indicate delayed collections. The reduction in employee headcount may be a cost control measure but could impact revenue generation capacity. The company needs to demonstrate improved cash conversion cycles and maintain sufficient liquid resources to meet short-term obligations.

4. Monitoring Points:

• Liquidity trends, especially cash balances and debtor days
• Ability to convert receivables into cash promptly
• Changes in employee headcount and impact on revenue
• Any increase in short-term liabilities or overdue payables
• Stability of management and control structure
• Timely filing of future accounts and confirmation statements