ANALYTICS SPHERE LTD

Executive Summary

Analytics Sphere Ltd is an early-stage micro company with a very modest financial base and tight liquidity. While currently solvent with a positive net asset position, its ability to service debt is limited and credit exposure should be cautious and conditional. Close monitoring of cash flow and financial improvements is advised before extending significant credit facilities.

ANALYTICS SPHERE LTD - Analysis Report

Company Number: 14784530

Analysis Date: 2025-07-29 18:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Analytics Sphere Ltd is a newly incorporated micro-entity with limited operating history and modest financial size. The company shows positive net current assets and net equity, indicating a minimal but positive working capital position. However, the absolute values are very small (£260 net assets as of 30/09/2024), reflecting a startup phase with limited financial buffer. The company’s ability to service debt is currently very constrained, and its financial resilience is low given the minimal asset base and low liquidity. Credit approval would be conditional on close monitoring and possibly secured or limited credit exposure until the company demonstrates consistent revenue generation and stronger financial footing.

2. Financial Strength:
   The balance sheet reflects a micro-sized entity with net assets of £260 at the latest year end, up slightly from £100 the previous year. Current assets of £5,743 are almost matched by current liabilities of £5,483, leaving a slim net current asset margin of £260. The company has no fixed assets and very limited capital reserves. This indicates a fragile financial position typical of a startup or early stage business. The shareholders’ funds equal net assets, confirming no long-term debt financing. Overall, the balance sheet is solvent but very thin, with minimal equity cushion to absorb adverse events.

3. Cash Flow Assessment:
   Current assets primarily represent cash or receivables, but with current liabilities almost equal to current assets, working capital is very tight. The company’s liquidity is minimal, and any delay in cash inflows could lead to payment difficulties. The small scale of operations (average 1 employee) and lack of fixed assets suggest low overheads, which may help in managing cash flow. However, the absence of an audit and limited financial history restricts full assessment of cash flow sustainability. Effective cash management will be critical to avoid liquidity stress.

4. Monitoring Points:

• Track improvements in net current assets and net equity to confirm strengthening financial position.
• Monitor cash flow trends monthly, especially receivables collection and creditor payments.
• Watch for any increase in liabilities or overdraft usage that could strain liquidity.
• Review management changes and director stability; recent changes in directors may impact governance.
• Evaluate operational performance and revenue growth indicators as the company matures beyond its micro-entity phase.