STEP-CHANGE MANAGEMENT LTD

Executive Summary

Step-Change Management Ltd is an active micro-entity with a clean balance sheet and positive working capital in its first financial period. The company shows prudent financial stewardship with no debt and internal funding support, though limited trading history constrains risk assessment. Credit approval is recommended on a conditional basis, with close monitoring of operational cash flows and financial performance as the business develops.

STEP-CHANGE MANAGEMENT LTD - Analysis Report

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.