Company Number: 15126590

Analysis Date: 2025-07-20 11:43 UTC

1. Credit Opinion: APPROVE with conditions.
   Step-Change Management Ltd is a newly incorporated micro-entity (since September 2023) operating in management consultancy. Its initial financials show modest net assets and positive working capital, indicating a conservative start without over-leveraging. However, the limited trading history and small scale necessitate ongoing monitoring to confirm sustainable cash flows and business growth before increasing credit exposure.

2. Financial Strength:
   The balance sheet as of 30 September 2024 reflects total current assets of £20,922 against current liabilities of £3,683, yielding net current assets (working capital) of approximately £17,239. Net assets stand at £15,799, fully represented by shareholders’ funds, with no long-term liabilities reported. This clean, debt-free capital structure is a positive indicator of financial strength for a micro business, though the absolute values are low due to the company’s infancy.

3. Cash Flow Assessment:
   Cash and equivalents form the bulk of current assets, suggesting liquidity is adequate to meet short-term obligations. The positive net current assets imply sufficient working capital. Director advances of £1,674 indicate some internal funding support, which is typical for start-ups. The absence of audit and profit & loss details limits deeper cash flow insights, so cash generation capacity will need validation in future filings.

4. Monitoring Points:

• Future revenue and profitability trends as the company matures beyond the start-up phase.
• Maintenance of positive working capital and liquidity ratios to support operational needs.
• Any increases in liabilities or gearing levels that could stress cash flows.
• Directors' continued financial support or external financing arrangements.
• Timely filing of next accounts and confirmation statements to ensure compliance and transparency.