Company Number: 13477082

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: APPROVE
   AMS IT Support Ltd demonstrates a positive financial trajectory with increasing net assets and net current assets over the past three years. The company shows sound liquidity and working capital management, supported by healthy cash balances relative to current liabilities. Directors are experienced and actively involved, with no adverse records, indicating competent management stewardship. The business operates in the IT support and consultancy sector, which tends to be resilient and in demand. While the company is relatively young (incorporated 2021), the financial data supports its ability to meet debt obligations, making credit approval appropriate.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £12.9k in 2021 to £77.5k in 2024. Net current assets more than doubled from £37.5k in 2023 to £76.2k in 2024, reflecting improved liquidity and working capital. The company holds minimal fixed assets (£745) and modest stock (£3,057), indicating low capital intensity. Retained earnings have increased significantly, evidencing profitable operations. Current liabilities are stable around £116k, but comfortably covered by current assets (£191k), yielding a current ratio of approximately 1.65, which is satisfactory.

3. Cash Flow Assessment:
   Cash on hand and at bank increased substantially from £52k in 2023 to £95k in 2024, providing a good liquidity cushion. Debtors (£93.5k) are slightly lower than the prior year but remain significant; however, no long-term debtor balances indicate timely collections. The positive net current assets and strong cash position imply the company can service short-term liabilities and any additional credit facility with reduced liquidity risk. Dividend payments to directors (£21k) have been maintained at a moderate level relative to earnings, reflecting prudent cash management.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure cash flow remains robust.
• Consistency of profitability and retention of earnings to support net asset growth.
• Any material increase in current liabilities or borrowings that may pressure liquidity.
• Directors’ remuneration and dividends relative to cash flow to avoid cash strain.
• Market conditions affecting IT support demand and competitive pressures.