SYED AND COMPANY OLDHAM LTD

Executive Summary

SYED AND COMPANY OLDHAM LTD demonstrates gradual financial improvement with modest net asset growth and positive working capital in its micro-entity context. While short-term liquidity appears sufficient for current obligations, the company’s small scale requires cautious credit exposure and ongoing monitoring of cash flow and liabilities. Overall, the business shows adequate financial stewardship and compliance, supporting a conditional credit approval.

SYED AND COMPANY OLDHAM LTD - Analysis Report

Company Number: 13248859

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: APPROVE with conditions.
   SYED AND COMPANY OLDHAM LTD shows modest but consistent growth in net assets and net current assets over the past three years, indicating improving financial stability. The company is small (micro category) with low turnover implied, and limited financial complexity. The director has full control and the company is active and compliant with filing requirements. However, the balance sheet size is small and cash reserves are limited, so credit exposure should be conservative and closely monitored.

2. Financial Strength:
   The company’s net assets increased from £301 in 2023 to £3,909 in 2024, driven by an increase in current assets (mainly cash or receivables) and controlled current liabilities. Shareholders’ funds mirror net assets, showing no long-term debt or external equity. The balance sheet reflects a small but improving capital base with positive working capital, suggesting sound financial stewardship given the size and age of the business.

3. Cash Flow Assessment:
   Current assets of £7,780 against current liabilities of £3,871 provide a net current asset position of £3,909, indicating adequate short-term liquidity to meet obligations due within one year. The company reported an average of 2 employees in 2024, down from 4 previously, suggesting cost control measures. However, the absolute cash and working capital balances remain low, so cash flow forecasting is essential to ensure continuity.

4. Monitoring Points:

• Maintain vigilance on cash conversion cycles and debtor collections to sustain liquidity.
• Watch for any increase in current liabilities that could pressure working capital.
• Track profitability and cash flow trends as the company grows beyond micro category thresholds.
• Monitor director’s continued financial management and compliance with filing deadlines.
• Review any changes in client base or contracts that may impact revenue stability.