Company Number: 13815673

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Stowell Associates Ltd is a young private limited company engaged in management consultancy. Their latest accounts show a significant reduction in net assets from £23,487 at the end of 2022 to £818 at the end of 2023, primarily due to a sharp decrease in cash balances from £33,322 to £846 and a reduction in current assets overall. While the company remains active and compliant with filing deadlines, the erosion of liquidity and working capital warrants caution. Approval is recommended subject to monitoring liquidity trends and ensuring sustained cash inflows to meet short-term obligations.

2. Financial Strength:
   The balance sheet at 31 December 2023 shows minimal tangible fixed assets (£773) and current assets of £1,646, largely comprising £846 cash and £800 corporation tax recoverable. Current liabilities are £1,601, yielding a marginal net current asset position of £45. Compared to 2022, when net current assets were £22,456, this represents a material weakening of financial strength. Shareholders’ funds decreased from £23,387 to £718, indicating the company has consumed reserves and is operating with a very thin equity buffer.

3. Cash Flow Assessment:
   Cash at bank fell substantially from £33,322 in 2022 to £846 in 2023, suggesting cash outflows exceeded inflows during the period. Current liabilities remain around £1,600, so the company’s liquidity appears strained with limited working capital to cover short-term debts. The presence of a £233 directors’ loan account within creditors may indicate reliance on director funding. Overall, cash flow management is a concern, and the company’s ability to service debts depends on improving operational cash generation or additional funding.

4. Monitoring Points:

• Monitor cash balances and working capital monthly to detect early signs of liquidity stress.
• Track turnover and profitability trends to assess whether operational cash flow is improving.
• Review directors’ loan account movements to understand reliance on director financing.
• Confirm timely payment of liabilities and tax obligations to avoid penalties or enforcement actions.
• Watch for any changes in ownership or management that could impact financial stewardship.