Company Number: 13887853

Analysis Date: 2025-07-20 17:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Thorne Widgery Holdings Ltd is an active private limited company operating in the accounting and auditing sector. The company’s balance sheet as of 30 June 2024 shows a strong equity position (£1.09 million in shareholders’ funds) and positive net current assets (£433k), indicating a solid financial foundation. However, the company is relatively new (incorporated 2022) and does not report profit and loss details due to small company exemption, limiting insights into operational profitability and cash generation. The large debtor balance (£447k) is primarily amounts owed by group undertakings, which if collectible, supports liquidity but requires monitoring. The director changes late in 2024 may imply some transitional risk to management continuity. Overall, credit approval is recommended with conditions on ongoing monitoring of debtor collections and management stability.

2. Financial Strength:
   The company’s total assets less current liabilities have increased substantially from £476k in 2023 to £1.09 million in 2024, primarily driven by investments in group undertakings (£656k) and improved working capital. Current liabilities have decreased sharply from £159k to £14k, improving liquidity ratios. Share capital is nominal (£100), typical for private companies, but retained earnings and reserves have grown, indicating accumulated equity. No long-term debt was reported, reflecting a low leverage profile. The absence of audit and no P&L filing limits visibility on income quality but the balance sheet strength suggests good financial resilience.

3. Cash Flow Assessment:
   Cash on hand is minimal (£154), but given the nature of the business and significant debtors (£447k), cash flow is likely dependent on timely collection from related parties. Net current assets are positive and substantial, suggesting good short-term liquidity. However, debtor concentration risk exists as the majority of current assets are amounts owed by group undertakings, which if delayed or impaired, could stress liquidity. The company has no reported borrowings or overdrafts, reducing external repayment obligations. Working capital management and debtor ageing should be key focus points for ongoing credit assessment.

4. Monitoring Points:

• Debtor collection performance, especially amounts owed by group undertakings, to ensure liquidity is maintained.
• Management stability following recent director resignations and appointments, ensuring effective governance and strategic direction.
• Filing of future accounts with profit and loss data to assess operational performance and cash generation more transparently.
• Any changes in liabilities, particularly short-term creditors, which could signal emerging liquidity strain.