Company Number: 13887411

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PROSER LIMITED is a very small, micro-entity private limited company operating in tax consultancy and related services. The company is active, with timely filings and no overdue accounts or returns, which is positive. However, the company’s net assets and shareholders’ funds are extremely low (£125 as of 29 February 2024), reflecting minimal equity buffer and limited financial strength. Current liabilities due after one year remain significant relative to total assets, suggesting some longer-term obligations that the company may find challenging to cover without stronger cash flows. The absence of employees and minimal reported current assets (£2,568) also indicate a very lean operation. While the principal director holds full control and appears stable, the company’s financial scale and limited resources mean credit facilities should be cautiously sized and closely monitored. Approval may be granted with conditions such as limited exposure, strict covenant compliance, and regular financial updates.

2. Financial Strength:
   The balance sheet shows a micro-entity with very modest total assets and net assets declining from £202 in 2023 to £125 in 2024. Current assets have decreased significantly from £5,776 to £2,568, primarily cash and receivables. Current liabilities have also decreased but there are still significant creditors falling due after more than one year (£1,800). The net current assets remain positive (£1,925), indicating some short-term liquidity cushion, but the overall equity base is minimal. The company’s financial position is fragile, with limited capital reserves and no fixed assets reported. This restricts its ability to absorb shocks or invest in growth without external support.

3. Cash Flow Assessment:
   Cash on hand is low (£2,568 current assets less debtors and creditors), and the company reports no employees, indicating low operating overhead. However, the significant drop in current assets and net assets over the year suggests cash generation may be under pressure or the business is in an early development stage. The company’s working capital remains positive but has shrunk substantially, which could impact its ability to meet short-term obligations if turnover or collections weaken. No off-balance sheet liabilities reported, but limited financial history and small size reduce visibility on cash flow sustainability.

4. Monitoring Points:

• Track quarterly cash flow and working capital levels to ensure liquidity remains positive.
• Monitor the ageing of receivables and timely payment of creditors, especially those due after one year.
• Review any changes in director ownership or control, as well as any new financial commitments or guarantees.
• Watch for any missed filings or delays in accounts and confirmation statements, which could indicate governance issues.
• Assess financial trends in subsequent filings for growth, profitability, or further erosion of equity.