Company Number: 14608412

Analysis Date: 2025-07-29 20:01 UTC

1. Credit Opinion: APPROVE
   SJ CONSULTANCY HARROW LTD is a newly incorporated private limited company with a small but positive net current asset position and shareholder funds of £5,157 as of 31 January 2024. The company has no overdue filings or accounting issues and is active in a stable consulting sector (SIC 70229). Although it is very early in its business lifecycle, the company’s current liquidity and low liabilities support its ability to meet short-term obligations. The sole director and 100% shareholder demonstrates centralized control, which can be positive for financial discipline. Given the company’s small scale and recent formation, credit facilities should be modest and closely monitored but there is no indication of immediate risk.

2. Financial Strength:
   The balance sheet shows total cash of £10,798 against current liabilities of £5,641, resulting in net current assets of £5,157. Shareholders’ funds equal net assets at £5,157, reflecting a clean, simple capital structure with no long-term debt or fixed assets reported. The company operates with minimal employees (one, the director) and limited financial complexity. The absence of fixed assets and modest capital base are typical for a consultancy start-up but imply limited collateral value. Overall, the balance sheet is sound but not robust, consistent with an early-stage small enterprise.

3. Cash Flow Assessment:
   The company’s cash position comfortably exceeds short-term liabilities, indicating adequate liquidity to meet immediate payments. Net current assets are positive, showing working capital sufficiency. However, the accounts do not provide detailed profit and loss data or cash flow statements, limiting deeper analysis. Given the absence of audit and only small exemption filing, cash flow should be reviewed frequently to ensure ongoing operational funding. The director’s report refers to small company exemptions and no audit requirement, typical for a micro-sized entity. The company will need to build cash reserves as it grows.

4. Monitoring Points:

• Monitor upcoming filings and ensure continued compliance with Companies House deadlines.
• Review trading performance and cash flow as new financials become available to assess profitability and operational cash generation.
• Watch working capital trends and any increase in liabilities relative to cash or receivables.
• Evaluate director’s plans for business growth and capital injection if credit exposure increases.
• Keep aware of any changes in ownership, director appointments, or business activity that could impact credit risk.