SWDB FINANCIAL LTD

Executive Summary

SWDB Financial Ltd demonstrates improving financial health with strengthened net assets and liquidity over recent years. The company’s micro size and limited fixed assets are typical for its sector but warrant ongoing cash flow monitoring. Given the clear director control and current solvent position, credit approval is recommended with regular oversight of working capital and market risks.

SWDB FINANCIAL LTD - Analysis Report

Company Number: 13909874

Analysis Date: 2025-07-20 15:46 UTC

1. Credit Opinion: APPROVE with positive caution. SWDB Financial Ltd is a micro private limited company operating in mortgage finance since 2022. The company shows improving financial strength with net assets increasing significantly from £1,076 in 2024 to £8,610 in 2025. The director holds full control, which supports clear accountability. There is no history of overdue filings or insolvency. However, as a relatively new and small entity with modest fixed assets and limited employee base (2 average), it is prudent to monitor its cash flow and market conditions in the mortgage finance sector.

2. Financial Strength: The balance sheet shows a solid improvement over three years. Net assets have grown from £1,076 in 2024 to £8,610 in 2025, primarily driven by a substantial increase in net current assets from £1,087 to £9,314. Fixed assets are minimal (£747), consistent with a service-focused business. Shareholders' funds mirror net assets, indicating no hidden liabilities. Overall, the company is well capitalized for its size, with a current ratio comfortably above 1.5 (Current Assets £21,667 / Current Liabilities £12,353 ≈ 1.75), indicating good short-term solvency.

3. Cash Flow Assessment: Liquidity appears adequate with positive net current assets of £9,314, a strong turnaround from a negative position in 2022. The working capital position has improved significantly year-on-year, suggesting better management of receivables, payables, or cash holdings. The increase in current assets from £11,617 to £21,667 is a positive sign but should be monitored for quality (e.g., cash vs debtors). No direct cash flow statement is available, but the balance sheet improvements imply stable or improving operational cash flow.

4. Monitoring Points:

• Continue monitoring net current assets and liquidity ratios to ensure ongoing ability to meet short-term obligations.
• Watch for any increase in current liabilities relative to current assets that may indicate cash flow strain.
• Assess impact of market conditions in mortgage finance, especially regulatory changes or credit demand fluctuations.
• Monitor director’s conduct and any changes in management or ownership that could affect governance.
• Review annual accounts for profit generation trends and debt levels if applicable.