SL RAILWAY CONSULTANCY SERVICES LTD

Executive Summary

SL Railway Consultancy Services Ltd is a newly formed small consultancy with a positive but modest financial base and no adverse records. The company demonstrates sufficient working capital to meet short-term obligations but limited cash reserves warrant cautious initial credit limits. Ongoing monitoring of receivables and liquidity is essential as the business develops its trade and credit history.

SL RAILWAY CONSULTANCY SERVICES LTD - Analysis Report

Company Number: 14770560

Analysis Date: 2025-07-29 14:43 UTC

1. Credit Opinion: APPROVE with low credit risk but limited credit exposure recommended.
   SL Railway Consultancy Services Ltd is a newly incorporated small private limited company with a clean record and no adverse legal or financial history. It has modest working capital and shareholders’ funds, with a positive net asset position and no indication of distress. However, being newly formed with only one year of financial data and minimal operations (no employees reported), the company’s credit history and operational track record remain limited. Credit facilities should be conservative and closely monitored initially.

2. Financial Strength:

• Net assets stand at £4,664 as of 31 March 2024, supported entirely by net current assets (no fixed assets reported).
• Shareholders’ funds comprise minimal share capital (£1) and retained earnings (£4,663), indicating initial profitability or capital injection.
• Current assets (£5,758) exceed current liabilities (£1,094), resulting in positive working capital of £4,664, suggesting the company can meet short-term obligations.
• The balance sheet reflects a very small-scale operation with limited financial complexity or leverage.

3. Cash Flow Assessment:

• Cash at bank is low at £604, which may constrain liquidity if unforeseen expenses arise.
• Debtors of £5,154 suggest some receivables are due, contributing to liquidity, but their collectability should be verified.
• Positive net current assets indicate the company can cover immediate liabilities, but cash flow is tight given the low cash balance and no inventory reported.
• No employees reported, so overheads may be low, reducing cash burn risk.

4. Monitoring Points:

• Track receivables aging and collection efficiency to ensure working capital remains positive.
• Monitor cash balances closely to avoid liquidity strain, especially if the business scales up or takes on credit facilities.
• Review subsequent financial filings for growth in turnover, profitability, and asset base indicating business expansion and improved creditworthiness.
• Watch for any changes in director or ownership structure that may impact governance or financial strategy.
• Assess adherence to filing deadlines and compliance with statutory requirements as an indicator of management quality.