Company Number: 13696485

Analysis Date: 2025-07-29 16:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SLGM CONSULTANCY LIMITED is a micro-entity operating in management consultancy with stable net assets but a notable decline in net assets year-over-year (from £29,837 in 2023 to £18,994 in 2024). The company is active, compliant with filing deadlines, and has a low level of fixed assets consistent with its consultancy nature. However, the decline in net current assets and total net assets suggests a potential deterioration in financial strength or increased liabilities that merits monitoring. Given no audit is performed and the small size, credit facilities should be modest and conditional on ongoing monitoring of liquidity and profitability trends.

2. Financial Strength:
   The balance sheet shows net assets of £18,994 as of 31 October 2024, down from £29,837 the prior year, a reduction of approximately 36%. Fixed assets are minimal (£37), indicating limited capital investment, typical for this sector. Current assets increased slightly (from £29,562 to £41,643), but current liabilities also appeared (£22,686), resulting in reduced net current assets (£18,957). The company has modest equity aligned with a micro category business and no significant off-balance sheet liabilities reported. The decline in net assets should be investigated to understand if related to operational losses or changes in creditor balances.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and equivalents or receivables, with net current assets positive at £18,957, indicating an adequate short-term liquidity buffer to cover current liabilities of £22,686. The working capital remains positive but decreased compared to previous years, indicating potentially tighter liquidity. The average employee count is 3, suggesting limited payroll obligations. No off-balance sheet liabilities or contingent risks were disclosed. Cash flow from operations should be closely watched to ensure continued ability to meet short-term obligations without external financing.

4. Monitoring Points:

• Track net assets and net current assets trends to detect further erosion of financial strength.
• Monitor cash flow statements (if available) or bank statements to ensure liquidity remains sufficient given current liabilities.
• Review profitability or loss trends in future accounts to identify underlying causes of reduced equity.
• Confirm no increase in overdue liabilities or delays in statutory filings.
• Keep oversight on director and shareholder changes, especially given the presence of multiple significant controllers.