Company Number: 13264220

Analysis Date: 2025-07-20 15:59 UTC

1. Credit Opinion: APPROVE
   ASIT LIMITED demonstrates a stable and improving financial position with positive net assets and working capital over the past three years. The company is a micro-entity active in IT consultancy, showing prudent financial management and no overdue filings. Its ability to maintain net current assets well above current liabilities supports its capacity to meet short-term obligations. Given the absence of significant liabilities and clear shareholder equity growth, the company is a low credit risk for standard lending or credit facilities.

2. Financial Strength:
   The company’s net assets have increased from £13,267 in 2021 to £48,478 in 2024, signaling growth in retained earnings or capital injection. Fixed assets remain minimal (£910 in 2024), indicating a low capital intensity business. The balance sheet is healthy with current assets of £84,254 comfortably covering current liabilities of £36,673, yielding net current assets of £47,581, which suggests strong liquidity. Shareholders’ funds equal net assets, reflecting no long-term debt or hidden liabilities, enhancing financial stability.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the increase in current assets, especially cash or equivalents, relative to liabilities implies positive operating cash flows or effective working capital management. The company’s ability to grow net current assets from £13,268 in 2021 to £47,581 in 2024 points to sufficient liquidity to support ongoing operations and short-term debt servicing. The presence of only one employee suggests limited payroll pressure, further supporting cash flow stability.

4. Monitoring Points:

• Continued growth in net current assets and net assets to confirm financial trajectory.
• Maintenance of timely filing and compliance to avoid penalties or regulatory risks.
• Monitor any increase in liabilities or changes in working capital that could tighten liquidity.
• Track client concentration and payment terms in the IT consultancy sector, which can impact cash flow volatility.
• Watch for expansion plans that may require capital expenditure and impact financial strength.