SYNERGY CONSULTANCY LTD

Executive Summary

Synergy Consultancy Ltd is an early-stage micro private company showing initial financial turnaround from net liabilities to a small net asset position. The company’s liquidity is constrained, relying heavily on debtor collections to meet obligations. Credit approval is conditional with tight monitoring of cash flow and working capital recommended to mitigate risk.

SYNERGY CONSULTANCY LTD - Analysis Report

Company Number: 14780542

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Synergy Consultancy Ltd is a newly incorporated management consultancy (April 2023) with small-scale operations. The latest financials (year ending March 2025) show a marginal positive net asset position (£209) and an almost balanced working capital position (£43 net current assets), reflecting a slight improvement from the prior year’s negative equity and working capital. The company’s cash position is weak (£371) and trade debtors make up the bulk of current assets (£7,989), indicating some reliance on timely collections to meet short-term obligations. Given the nascent stage, modest scale, and limited financial buffer, credit approval should be conditional on continued monitoring of cash flow and debtor collection, with limits set conservatively.

2. Financial Strength
   The balance sheet reflects a micro-sized private limited company with minimal tangible fixed assets (£166 net book value) and small equity capital (£1 share capital). The company reversed prior year net liabilities (£-802) to a small positive net asset position (£209), driven primarily by accrued debtors. Current liabilities increased (£8,317), mainly taxes and social security (£7,117), which may suggest recent payroll or VAT obligations. Overall, the financial structure is fragile with minimal equity cushion and a reliance on short-term receivables.

3. Cash Flow Assessment
   Cash balances are low (£371) and have declined significantly from £2,577 the prior year. Debtors now represent almost all current assets, so liquidity depends on their collection. The company has minimal working capital (£43), leaving little room to absorb delays in payment or unexpected expenses. The increase in current liabilities, especially tax-related, warrants careful monitoring to ensure obligations are met on time. The single employee headcount suggests limited payroll burden, but cash generation from operations needs close scrutiny.

4. Monitoring Points

• Debtor collection efficiency and aging to ensure timely cash inflows.
• Cash balance trends and ability to meet tax and social security liabilities as they fall due.
• Profitability trends in next filings to confirm sustainable earnings generation.
• Any changes in director or shareholder control that might impact governance or financial management.
• Overall liquidity position to avoid cash shortfalls given the thin working capital.