Company Number: SC677752

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: APPROVE with caution. Aligned IT Ltd is a micro-sized private limited company engaged in IT consultancy, with stable equity but showing a decline in net assets and working capital over the last year. The company’s ability to service debt appears adequate given positive net current assets and no overdue filings. However, the recent reduction in liquidity and equity requires monitoring, and credit exposure should be limited accordingly.

2. Financial Strength: The company’s balance sheet shows modest fixed assets (£8,205) and current assets (£39,287) with current liabilities of £28,453 as of 31 October 2024. Net current assets dropped from £27,654 in 2023 to £10,834 in 2024, while shareholders' funds declined from £33,397 to £19,039. This indicates a weakening capital base and reduced buffer to absorb financial shocks. The company remains solvent but with diminished financial resilience compared to prior years.

3. Cash Flow Assessment: Current assets primarily represent cash and short-term receivables, supporting liquidity. Net current assets remain positive, implying the company can meet short-term obligations. However, the near 60% drop in net current assets year-on-year suggests tighter working capital management or reduced cash inflows, which could strain operations if not addressed. No external borrowing data is available, but the modest capital and liquidity position imply limited debt capacity.

4. Monitoring Points:

• Track net current assets and shareholders’ funds for further declines indicating financial distress.
• Monitor cash flow trends and receivables collection to ensure ongoing liquidity.
• Review director stability and governance, noting the recent resignation of one director and sole control by Mr Simon Lee.
• Watch for changes in client contracts or revenues typical in IT consultancy that could impact cash generation.