Company Number: 13133454

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: APPROVE
   Warwood Consulting Limited demonstrates strong financial stability with growing net assets and positive working capital. The company has no overdue filings, indicating good compliance and management discipline. Although a micro-entity with limited staff (currently zero employees), its consistent asset growth and equity base support its ability to meet credit obligations. Its sector, IT consultancy, is generally resilient, which helps mitigate cyclical risks. The director appears actively involved with no adverse records. Overall, the business profile and financials support an approval for credit facilities of a modest scale, aligned with its micro status.

2. Financial Strength:
   The balance sheet shows a solid financial position for a micro-entity. Net assets increased from £55,983 (2023) to £76,844 (2024), a 37% rise, primarily driven by increased current assets (mainly cash or receivables) rising from £75,025 to £95,942. Fixed assets are negligible (£749 in 2024). Current liabilities remain stable around £19,700, resulting in a strong net current asset position of £76,156. Shareholders’ funds mirror net assets, indicating no hidden liabilities or off-balance sheet concerns. The company has minimal long-term liabilities (£61), confirming low gearing and strong equity backing.

3. Cash Flow Assessment:
   The company’s liquidity is sound, with net current assets comfortably covering short-term liabilities by nearly 4.9 times (£76,156 vs £19,786). This indicates good working capital management and a strong cash position or receivables base. The absence of employees suggests low overheads, reducing cash burn risk. However, no detailed cash flow statement is available, so reliance is on balance sheet liquidity. The company’s ability to convert current assets to cash timely would be a monitoring point, but current figures imply no immediate cash flow stress.

4. Monitoring Points:

• Maintain positive working capital and monitor receivables turnover to ensure liquidity remains robust.
• Track revenue and profit trends as the company scales beyond micro status to confirm sustainable growth.
• Monitor any changes in director appointments or governance that could affect management quality.
• Watch for any increase in liabilities or overdue filings that could signal operational or financial distress.
• Given no employees currently, assess if future hiring impacts cash flow and profitability.