AJB TECHNICAL SOLUTIONS LTD

Executive Summary

AJB Technical Solutions Ltd is a small, active IT consultancy with a stable balance sheet and positive working capital, indicating the ability to meet short-term obligations. However, recent declines in net assets and liquidity warrant conditional credit approval with a focus on close cash flow monitoring. The company’s financial position is typical of a micro-entity but requires prudent oversight to ensure ongoing repayment capability.

AJB TECHNICAL SOLUTIONS LTD - Analysis Report

Company Number: 12936690

Analysis Date: 2025-07-29 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AJB Technical Solutions Ltd demonstrates a stable but modest financial position typical for a micro-entity in IT consultancy. The company maintains positive net current assets and shareholders' funds, indicating an ability to meet short-term liabilities. However, the declining net assets and lower liquidity in the latest year compared to prior years suggest some caution. Approval is recommended with conditions that focus on monitoring cash flow trends and any changes in working capital management.

2. Financial Strength:
   The balance sheet shows total net assets of £4,563 at 31 October 2024, down from £5,565 the previous year. Fixed assets are minimal (£449), and the company relies primarily on current assets (£10,216) to cover liabilities. Shareholders’ funds represent 100% of net assets, indicating no external debt, which is positive for financial stability. However, the decrease in net current assets (£4,114 from £4,966) and total net assets signals a slight weakening. The company remains solvent with positive equity and no indications of over-leveraging.

3. Cash Flow Assessment:
   Current assets include cash and receivables sufficient to cover current liabilities (£6,102), resulting in a positive working capital position. The net current assets of £4,114 indicate reasonable short-term liquidity to service operational expenses and any short-term borrowings. Given the small scale and micro-entity status, cash flow volatility may be a risk; therefore, close attention should be paid to receivables collection and creditor payment terms to avoid liquidity strains.

4. Monitoring Points:

• Track quarterly cash flow statements or management accounts to detect any liquidity deterioration early.
• Monitor any material changes in current liabilities or delayed creditor payments that could signal cash flow stress.
• Observe net asset trends in subsequent accounts filings to ensure the company maintains positive equity.
• Review director conduct and management consistency, although current directors have no adverse records and appear stable.
• Watch for any increase in short-term borrowings or overdraft usage that may affect repayment capacity.