SYMONDS CONSULTANCY LTD

Executive Summary

Symonds Consultancy Ltd shows a sound initial financial position with positive net assets and working capital suitable for a small consultancy start-up. However, limited operating history and scale warrant conditional credit approval with ongoing monitoring of financial performance and liquidity. The company’s low leverage and management control provide a stable foundation, but cautious vigilance is advised given the early stage of operations.

SYMONDS CONSULTANCY LTD - Analysis Report

Company Number: 15482403

Analysis Date: 2025-07-29 13:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Symonds Consultancy Ltd is a newly incorporated micro-entity engaged in management consultancy. Its financials show a modest but positive net asset base of £4,910 and net current assets of £3,026, indicating sufficient short-term liquidity to meet current obligations. However, the company has minimal operating history (incorporated in 2024) with only two employees, and limited financial data, which increases uncertainty about its ongoing cash flow generation and profitability. Given the micro-entity scale and early stage, credit approval is recommended with conditions such as periodic financial review and monitoring of trading performance to mitigate risk.

2. Financial Strength:
   The balance sheet is healthy for a micro-entity, showing fixed assets of £1,884 and current assets of £6,620 against current liabilities of £3,594. The net assets and shareholders’ funds of £4,910 reflect a positive equity position. The company has a very small share capital (£4) but shareholders’ funds include retained earnings or reserves supporting the capital base. The absence of long-term liabilities suggests low financial leverage, enhancing solvency. However, the company’s size and short trading history mean financial strength is limited and should be viewed cautiously.

3. Cash Flow Assessment:
   Net current assets of £3,026 demonstrate a positive working capital position, indicating sufficient liquid resources to cover short-term liabilities. The current asset composition is not detailed but assuming cash or receivables dominate, liquidity is adequate. The company’s small scale and limited employee base imply low fixed overheads, which should aid cash flow stability. Nonetheless, without detailed cash flow statements, predictability of future cash inflows is uncertain, requiring close monitoring of accounts receivable and payment patterns.

4. Monitoring Points:

• Profitability trends and generation of positive retained earnings in future accounts.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Changes in working capital management, particularly receivables and payables cycles.
• Any increase in liabilities or capital expenditure that could impact liquidity.
• Continuity of key management personnel given their significant control and operational roles.