SIMPLEFLOW CONSULTING LIMITED

Executive Summary

Simpleflow Consulting Limited demonstrates improving financial health with strengthened net assets and liquidity in 2023, supported by the repayment of director loans and positive working capital. The company’s small size and limited resources suggest a cautious credit stance, but current data supports a conditional credit approval subject to ongoing monitoring of cash flow and operational stability.

SIMPLEFLOW CONSULTING LIMITED - Analysis Report

Company Number: 13109591

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: APPROVE with conditions
   Simpleflow Consulting Limited shows modest but improving financial health, with positive net assets and working capital as of 2023 year-end. The company operates in management consultancy, a sector that typically has low fixed asset intensity and moderate working capital needs, which aligns with their financial profile. The repayment of a director loan during 2023 reduces related party risk. However, the company remains small with limited capital and a single employee, so credit exposure should be limited and closely monitored. A conditional approval is recommended, subject to confirmation of ongoing cash flow stability and no significant adverse changes in trading conditions.

2. Financial Strength:

• Net assets increased from £363 in 2022 to £6,697 in 2023, indicating a strengthening equity base.
• Positive net current assets of £3,604 in 2023 (compared to a £381 deficit in 2022) reflect improved short-term financial stability.
• Tangible fixed assets increased to £3,093 in 2023 but remain modest relative to total assets, consistent with consultancy business operations.
• The company repaid a director loan of £5,986 during the year, improving the balance sheet quality by reducing intra-group liabilities.
• Share capital is nominal (£10), which is typical for a small private company.

3. Cash Flow Assessment:

• Cash at bank increased significantly from £5,741 in 2022 to £15,782 in 2023, enhancing liquidity and ability to meet short-term obligations.
• Debtors reduced from £5,986 in 2022 to zero, which reduces credit risk and improves cash conversion, though the reason for this change should be confirmed (e.g., improved collections or write-offs).
• Current liabilities remained stable around £12,000, so the company has a reasonable buffer in working capital to cover short-term debts.
• The company has only one employee and limited operational expenses, suggesting relatively stable and predictable cash outflows.

4. Monitoring Points:

• Maintain close watch on cash flow trends and debtor balances to ensure liquidity remains sufficient to cover liabilities.
• Monitor profitability and retention of earnings to support further strengthening of net assets.
• Confirm no recurrence of director loans or related party transactions that could affect financial stability.
• Review impact of any changes in consultancy market conditions or client concentration risk.
• Ensure timely filing of future accounts and confirmation statements to maintain compliance and transparency.