ACOUSONIX LIMITED

Executive Summary

Acousonix Limited is a newly established small private company with modest net assets and positive cash reserves but carrying significant current liabilities including intercompany and tax-related debts. While the company shows potential supported by its parent, credit approval is conditional on continued group support and careful monitoring of liquidity and creditor settlements. Ongoing assessment of cash flow generation and operational progress will be key to future creditworthiness.

ACOUSONIX LIMITED - Analysis Report

Company Number: 14555022

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Acousonix Limited is a recently incorporated small private limited company with a single director and a single shareholder parent company controlling 75-100% of shares and voting rights. The company shows modest net current assets of £8,233 as at 31 December 2023, supported by a healthy cash balance of £38,654. However, it has significant current liabilities (£32,086), including amounts owed to the group and tax liabilities. Given the limited operating history (first accounting period post incorporation) and relatively low equity base (£8,233), credit approval is conditional on continued support from the parent company and monitoring of cash flow and creditor settlements. The director’s clean record and the unqualified audit report add some assurance.

2. Financial Strength:
   The balance sheet reflects a small-scale operation with total equity equal to net current assets (£8,233). The company's fixed assets are not disclosed, implying minimal investment in long-term assets at this stage. The current liabilities include £11,919 owed to group undertakings, £2,744 corporation tax, and £13,559 other taxation and social security, indicating tax obligations and intercompany debt that must be managed carefully. The modest equity and net working capital mean the company is reliant on cash flow and group support to meet liabilities. The absence of long-term borrowings reduces financial risk but also limits capital flexibility.

3. Cash Flow Assessment:
   Cash at bank and in hand (£38,654) exceeds current liabilities, providing a comfortable liquidity buffer as of the last reporting date. Debtors are minimal (£1,665), suggesting limited trade receivables or early-stage revenue recognition. The relatively high level of tax and social security creditors requires close monitoring to ensure timely payment and avoid penalties. The company’s ability to generate positive cash flow from operations is not yet evident due to the early stage of trading, so ongoing liquidity management is critical. Working capital is positive but tight, emphasizing the need for prudent cash management and parent company support.

4. Monitoring Points:

• Ongoing cash flow and liquidity position, especially to cover tax and social security liabilities.
• Settlement patterns of intercompany balances and creditor payments.
• Revenue growth and profitability trends as trading matures beyond the first year.
• Any changes in ownership or director appointments that could affect governance and control.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.
• Parent company support continuation given the early stage and modest equity base.