Company Number: 12831539

Analysis Date: 2025-07-20 15:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aquasphinx Limited shows a significant turnaround in financial position from prior years, moving from net liabilities in 2023 to positive net assets of £36,906 in 2024. The company benefits from positive working capital and no overdue filings, indicating good compliance and financial stewardship. However, as a micro-entity with limited history (incorporated in 2020) and modest asset base, caution is warranted. Approval is conditional on continued positive cash flow and monitoring of operational scaling as the company grows.

2. Financial Strength:
   The balance sheet at 31 August 2024 reports fixed assets of £468 and current assets of £52,182, largely cash or short-term receivables, against current liabilities of £14,532. This yields net current assets of £37,650, a strong liquidity position. Total net assets stand at £36,906, a marked improvement from a net liability position in the prior two years. The increase in shareholders’ funds reflects retained profits or capital injection, indicating improving financial health and management effectiveness. Share capital is nominal at £100, suggesting limited initial equity; reliance on operational cash generation is critical.

3. Cash Flow Assessment:
   The large increase in current assets from £15,770 in 2023 to £52,182 in 2024, alongside a reduction in current liabilities, suggests improved liquidity and working capital management. Net current assets positive by £37,650 provide a buffer against short-term obligations. The company’s micro-entity status means detailed cash flow statements are not available, but balance sheet indicators point to adequate liquidity to service debt and commercial commitments for now. Continued monitoring of cash conversion cycles and receivables aging will be important.

4. Monitoring Points:

• Maintain positive net current assets and avoid build-up of short-term liabilities.
• Monitor revenue growth and profitability trends as company scales beyond micro size.
• Track director changes and governance, especially as new directors have been appointed recently (2024).
• Ensure timely filing of accounts and confirmation statements continues to avoid regulatory risk.
• Watch for concentration risk given single significant controlling shareholder (Mr. Michel Reznik).