Company Number: 13112060

Analysis Date: 2025-07-20 12:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. West Peak Partners Ltd is an active private limited company engaged in management consultancy. The company shows modest net assets and has maintained operational activity since incorporation in 2021. However, the presence of net current liabilities and increasing short-term creditor balances indicates some liquidity strain. The company’s ability to service debt is conditional on maintaining positive cash flow and managing working capital closely. No director disqualifications or adverse governance flags are noted, which supports management quality.

2. Financial Strength: At 31 December 2023, the company reported net assets of £34,036, up from £29,338 in 2022, reflecting a small but positive equity base. Tangible fixed assets stand at £65,724 (net book value), showing some investment in long-term assets. However, current liabilities of £139,144 exceed current assets of £107,456, resulting in net current liabilities of £31,688. The balance sheet indicates that while the company holds fixed assets and equity, it is reliant on short-term creditor funding to cover working capital needs, which may pose risk in adverse conditions.

3. Cash Flow Assessment: Cash at bank increased significantly to £99,703 in 2023 from £29,169 in 2022, which is a positive liquidity signal. However, trade debtors decreased substantially to £4,028 from £21,124, suggesting a tighter receivables position or potentially slower sales collection. The large increase in other creditors to £93,984 (from £83,075) and taxation/social security liabilities to £42,934 (from £15,468) contribute to the net current liabilities. The company employs six staff, indicating ongoing operational expenses. Overall, while cash reserves are healthier, ongoing working capital management is critical to ensure liquidity.

4. Monitoring Points:

• Watch trends in net current liabilities and creditor days to ensure short-term obligations remain manageable.
• Monitor cash flow statements and turnover growth to confirm the company’s ability to convert sales into cash.
• Observe any changes in director appointments or ownership that could impact strategic direction or credit risk.
• Review future lease commitments (£7,356 in 2023) for impact on fixed costs.
• Track tax and social security payables for timely settlement to avoid penalties.