WEST SURREY ACCOUNTANTS LIMITED

Executive Summary

West Surrey Accountants Limited shows a recovering financial position with increased net assets and shareholder funds, supported by a qualified director with full control. However, liquidity remains tight due to negative net current assets, posing some risk to short-term debt servicing. Conditional credit approval is recommended with conservative limits and active monitoring of cash flow and working capital metrics.

WEST SURREY ACCOUNTANTS LIMITED - Analysis Report

Company Number: 12819156

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. West Surrey Accountants Limited is a micro private limited company providing tax consultancy and accounting services. The company has demonstrated modest growth in asset value and shareholder funds over the last financial year. However, the current liabilities exceed current assets, indicating working capital pressure. The director holds full control and is a certified chartered accountant, which supports sound financial stewardship. Credit facilities could be considered if structured conservatively with close monitoring of liquidity and timely servicing of obligations.

2. Financial Strength: The company’s balance sheet as of 31 March 2024 shows fixed assets of £32,000 and current assets of £24,751 against current liabilities of £29,726. While net current assets are negative (£-4,975), shareholders’ funds have improved significantly to £27,025 from a deficit of £1,029 the prior year, reflecting retained earnings or capital injection. The improvement in net assets indicates growth and strengthening equity base. However, the negative working capital position suggests limited buffer for short-term obligations.

3. Cash Flow Assessment: Liquidity is constrained with current liabilities exceeding current assets by approximately £5,000. Given the company’s small scale and micro entity classification, cash flow volatility could impact timely payment of short-term debts. There is no turnover or profit data available for 2024, limiting direct cash flow analysis, but the increase in current assets suggests some improvement. Working capital management should be closely supervised to avoid cash flow stress.

4. Monitoring Points:

• Monitor liquidity ratios, specifically current ratio and quick ratio, to ensure working capital remains sufficient.
• Track profitability and turnover growth to assess ability to generate operational cash flow.
• Review director’s management of receivables and payables cycles to improve cash conversion.
• Keep watch on any increases in current liabilities or delays in creditor payments.
• Confirm ongoing compliance with filing deadlines and absence of adverse director conduct.