ACCELONIX LIMITED
Company number 03633364 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: ACCELONIX LIMITED
1. Credit Opinion: APPROVE
The company demonstrates a consistent track record of profitability and balance sheet growth over the examined period. Net assets have more than doubled from £524k (2015) to £1,141k (2024), representing compound annual growth of approximately 9%. Cash generation is strong with £1.07M on hand, and retained earnings continue to accumulate year-on-year. The group structure under Accelonix Holding BV provides additional comfort regarding potential parent company support. The primary limiting factor is the reduced transparency from small company filing exemptions, which constrains full visibility over trading performance. Approval is recommended with standard monitoring conditions.
2. Financial Strength
Balance Sheet Summary (2024 vs 2023):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Fixed Assets | £521,930 | £516,474 | +£5,456 |
| Current Assets | £2,817,210 | £2,027,952 | +£789,258 |
| Current Liabilities | £(2,067,977) | £(1,326,793) | +£741,184 |
| Net Current Assets | £749,233 | £701,159 | +£48,074 |
| Provisions | £(130,500) | £(129,500) | +£1,000 |
| Net Assets | £1,140,663 | £1,088,133 | +£52,530 |
Key Ratios:
| Ratio | 2024 | 2023 |
|---|---|---|
| Current Ratio | 1.36x | 1.53x |
| Quick Ratio (ex-stock) | 1.26x | 1.36x |
| Net Assets Growth | 4.8% | 4.7% |
| Tangible Net Worth | £1,140,663 | £1,088,133 |
Analysis:
The balance sheet shows healthy equity growth, with shareholders' funds increasing by £52,530 in the year. This represents retained profits after any distributions, confirming ongoing profitability. The P&L reserve has grown from £1,033,071 to £1,085,601, demonstrating profit retention and reinvestment in the business.
The current ratio has weakened from 1.53x to 1.36x, primarily driven by a significant increase in current liabilities (£741k). This requires examination — if trade creditors, it may reflect normal trading growth; if group-related borrowings, the terms and repayment profile need clarification. The quick ratio remains above 1.0x, indicating adequate liquid asset coverage of short-term obligations.
Capitalisation is modest with only £200 share capital and £54,862 in capital redemption reserve, meaning the business is overwhelmingly funded through retained earnings — a positive indicator of self-sustaining growth rather than leverage dependency.
3. Cash Flow Assessment
Working Capital Analysis:
| Component | 2024 | 2023 | Change |
|---|---|---|---|
| Stocks | £206,991 | £217,836 | -£10,845 |
| Debtors | £1,537,644 | £1,116,401 | +£421,243 |
| Cash | £1,072,575 | £693,715 | +£378,860 |
| Creditors (due <1yr) | £2,067,977 | £1,326,793 | +£741,184 |
Observations:
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Cash Position: Cash increased by £379k to £1.07M, representing 38% of current assets. This is a strong liquidity position and provides meaningful headroom for operational requirements and debt service.
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Debtors: The 37.7% increase in debtors (£421k) is significant and outpaces the growth in other balance sheet items. This warrants investigation — it could reflect genuine sales growth, extended payment terms to customers, or potential collection issues. Given the company operates across Western Europe, foreign debtor exposure and currency considerations may be relevant.
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Creditor Increase: The £741k increase in current liabilities is the most notable balance sheet movement. Understanding the composition is critical — trade creditors, accruals, and any group company borrowings should be distinguished. If this represents trade creditors stretched to fund debtor growth, working capital management needs scrutiny.
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Stock: Marginally decreased, suggesting efficient inventory management — appropriate for a distribution/sales business model.
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Operating Cycle: The debtor-to-creditor ratio has shifted, with debtors growing faster than the business appears to support comfortably. Days Sales Outstanding and Days Payable Outstanding metrics would clarify the working capital dynamics.
Cash Generation Quality: The increase in cash alongside growing debtors suggests underlying cash generation is strong. The business converted profits to cash effectively, even while extending credit to customers.
4. Monitoring Points
| Priority | Metric | Rationale | Threshold |
|---|---|---|---|
| High | Debtors Ageing Profile | 37.7% increase requires validation — assess collectability and concentration | Debtors >80% of net assets |
| High | Creditor Composition | Clarify trade vs group liabilities; understand repayment terms | Group liabilities >30% of current liabilities |
| Medium | Current Ratio Trend | Has weakened from 1.53x to 1.36x — monitor for further deterioration | Below 1.2x |
| Medium | Sector Exposure | Electronics manufacturing is cyclical — watch for downturn impacts on sales and debtor recovery | Revenue decline >15% YoY |
| Medium | Group Structure | Parent company (Accelonix Holding BV) financial health and inter-company positions | Request parent guarantee for significant facilities |
| Low | Cash Position | Currently strong at £1.07M — monitor for significant drawdown | Below £500k |
| Low | Filing Compliance | Currently compliant — ensure continuation | Any overdue filings |
Additional Considerations:
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The company operates under small company filing exemptions, meaning no P&L account is published. For facilities above standard thresholds, request management accounts to validate trading performance and cash flow projections.
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The £130,500 provision (likely deferred consideration or warranty obligations) should be understood in terms of timing and certainty.
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The group structure through a Dutch holding company may have implications for enforcement and security arrangements — legal review of inter-creditor positions is recommended for larger facilities.
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Previous name change from B.S.E. (U.K) Limited in 2002 is historical and not a concern, but worth noting for background checks.