Company Number: 13210616

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Swilsy & Son Ltd presents a modest but stable financial position with positive net assets and working capital. However, the company’s net assets and current assets have declined notably in the latest year, indicating potential operational or revenue pressures. The business is very small (single director and employee, minimal fixed assets), and its fund management activity may expose it to market risks. Credit approval is recommended with conditions: limit exposure, require updated financials regularly, and monitor liquidity closely.

2. Financial Strength:

• Net assets decreased from £19,984 in 2023 to £9,848 in 2024, a 51% drop, which is significant
• Fixed assets are nominal (£654) and declining, indicating limited capital investment
• The company’s share capital is minimal (£10), with most equity from retained earnings
• The balance sheet shows positive net current assets (£9,194) but reduced from £19,166 the prior year
• Current liabilities are stable at about £9,800, including a sizeable corporation tax creditor (~£8,100)
  Overall, the company remains solvent but shows signs of financial contraction.

3. Cash Flow Assessment:

• Cash on hand fell from £24,639 in 2023 to £19,028 in 2024, a 23% reduction, signaling tighter liquidity
• Debtors went from £3,834 to zero, which may indicate faster collections or lost revenue streams
• Current liabilities remained stable, suggesting the company is managing payables well
• Positive net working capital demonstrates ability to meet short-term obligations but the declining cash balance warrants caution
  Liquidity appears adequate but shrinking, so monitoring cash flow forecasts is necessary.

4. Monitoring Points:

• Watch continued trends in net assets and working capital to detect financial deterioration
• Monitor cash flow and tax liabilities closely, especially corporation tax which forms a large part of current liabilities
• Track revenue and debtor activity to confirm sustainability of operations
• Assess impact of market conditions on fund management business model
• Review director’s loan account movements to ensure no related party financing risk
• Require timely filing of financials and confirmation statements to maintain transparency