Company Number: 13265429

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Tunley Financial Limited shows a business in early development with a micro-entity profile and limited financial history. The company’s net liabilities position and reliance on long-term creditor funding raise concerns about financial stability. However, the business has improved net current assets significantly in the latest year, indicating better short-term liquidity. Approval should be contingent on continued improvement in profitability, debt reduction, and monitoring of creditor terms.

2. Financial Strength:
   The balance sheet reflects net liabilities of £23,429 at 31 March 2024, deteriorating from a modest negative net asset position in previous years. Total liabilities include significant amounts due after one year (£35,145), suggesting reliance on creditor financing or loans. Fixed assets are minimal (£182) and unchanged, consistent with limited capital investment. The negative equity position indicates accumulated losses or initial start-up costs not yet offset by retained earnings. Share capital is nominal (£2), typical for a micro company.

3. Cash Flow Assessment:
   Current assets increased markedly to £25,486 from £3,238 the prior year, driven likely by cash or receivables, while current liabilities rose to £13,472. This yields positive net current assets of £12,014, a notable improvement from prior year deficits, reflecting enhanced short-term liquidity and working capital management. However, the presence of long-term creditors (£35,145) may imply cash flow constraints or deferred creditor payments. There is only one employee, indicating low fixed overheads.

4. Monitoring Points:

• Continued improvement in net asset position and reduction of net liabilities.
• Profitability trends and cash generation from operations to support debt servicing.
• Management of creditor balances and any refinancing risks associated with long-term liabilities.
• Compliance with filing deadlines and maintenance of accurate financial records.
• Directors’ ability to improve financial performance given the micro company scale.