Company Number: 13563822

Analysis Date: 2025-07-20 11:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Westridge Consultancy Ltd demonstrates modest financial growth with increasing net assets from £2,100 in 2023 to £11,062 in 2024. However, the company exhibits a significant current liabilities increase to £138,116 in 2024, surpassing current assets of £21,807, resulting in a negative net current asset position (-£116,309). This raises concerns about short-term liquidity and working capital management. The increase in fixed assets (£127,371) suggests recent investment but may strain cash resources. Given these factors, credit facilities could be approved conditionally, subject to monitoring liquidity improvements and possibly requiring guarantees or collateral.

2. Financial Strength:
   The company’s balance sheet shows a small but improving equity base (£11,062), reflecting retained earnings or capital injection. The sharp rise in current liabilities is a red flag, indicating potential reliance on short-term borrowings or trade creditors. Fixed assets now form a substantial portion of total assets, which may not be easily liquidated to meet immediate obligations. Overall, the balance sheet is weak in liquidity but stable in equity, typical for a micro-entity in early growth stages.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets by a wide margin, the company likely faces cash flow pressures. The absence of detailed cash flow statements limits precise evaluation, but the working capital deficit suggests potential difficulties in meeting short-term obligations without additional funding or improved receivables management. The company should be advised to enhance cash conversion cycles or secure longer credit terms from suppliers.

4. Monitoring Points:

• Track monthly liquidity ratios (current ratio, quick ratio) to detect improvements or deterioration.
• Monitor trade creditor and debtor aging to assess cash flow timing risks.
• Review fixed asset utilization and potential impairment risks.
• Observe any new borrowings or changes in shareholder capital.
• Keep watch on director payments and related-party transactions given concentrated control.