THE PLANNING GUY (RG) LTD

Executive Summary

The Planning Guy (RG) Ltd is a small, micro-entity showing signs of financial improvement but remains constrained by negative working capital and minimal net assets. While the company is currently active and compliant with filings, its limited scale and liquidity pose moderate credit risk. Conditional credit approval is recommended with careful monitoring of cash flow and working capital.

THE PLANNING GUY (RG) LTD - Analysis Report

Company Number: 13472117

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. The Planning Guy (RG) Ltd is a micro-entity with limited financial scale and activity, incorporated relatively recently in 2021. The company has shown improvement in net assets from a negative position (£-97) in 2023 to a positive net asset position (£513) in 2024, indicating some recovery or capital injection. However, the company continues to report net current liabilities, though significantly reduced from £-1,047 in 2023 to £-150 in 2024, suggesting ongoing short-term liquidity pressures. Given its small size, minimal fixed assets, and negative working capital, the company’s ability to service larger credit facilities is limited. Approval would be conditional on ongoing monitoring of liquidity and cash flow, with credit limits kept modest and short term.

2. Financial Strength:
   The company’s balance sheet reflects micro-entity status with total net assets of £513 as at 30 June 2024, up from negative net assets in the prior year. Fixed assets are minimal (£663), mainly likely to be intangible or small equipment. The key concern remains the negative net current assets position (£-150), though this is a marked improvement over previous years’ larger deficits. The company has no employees besides the director, which reduces fixed overhead but also limits business scale and diversification. Overall, the balance sheet is fragile but improving.

3. Cash Flow Assessment:
   Current liabilities exceed current assets (£1,479 vs £1,329), indicating working capital deficit and potential short-term liquidity constraints. The company’s ability to convert current assets into cash quickly is critical, but given the micro size and no inventory or debtor details provided, liquidity risk remains. No overdrafts or borrowings are disclosed, so it is unclear if external financing supports operations. The absence of employees reduces payroll cash flow pressures but also limits operational capacity. Cash flow management will be a key risk factor.

4. Monitoring Points:

• Net current asset position and trends in working capital management
• Cash flow statements and actual liquidity levels, including bank balances
• Timely payment of creditors and tax obligations
• Director’s ongoing involvement and any changes in ownership or control
• Business development and revenue growth to reduce reliance on external funding
• Any changes in filing compliance or overdue accounts/returns