AZTRAX SOLUTIONS LIMITED

Executive Summary

Aztrax Solutions Limited shows improving financial strength with increased net assets and cash balances, reflecting strengthening liquidity and operational capacity. Being an early-stage IT services company, it warrants approval of credit with conditions focused on monitoring cash flow, related-party funding, and tax obligations. Continued oversight is recommended to ensure the company maintains its positive financial trajectory and manages working capital prudently.

AZTRAX SOLUTIONS LIMITED - Analysis Report

Company Number: 14470708

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: APPROVE with conditions
   Aztrax Solutions Limited is a relatively new private limited company incorporated in late 2022, operating in the IT services sector. The company shows positive growth in net current assets and shareholders’ funds over the past two years, indicating improving financial stability. However, as it is still in its early growth phase with no employees reported, limited fixed assets, and relatively modest cash reserves, credit facilities should be provided with close monitoring and clear covenants on cash flow and liquidity.

2. Financial Strength:
   The balance sheet shows a healthy net asset position, increasing from £23.6k in 2023 to £50.7k in 2024. The company’s current assets rose significantly to £96.6k, mainly due to cash increasing to £66k from £4.8k the prior year, and trade debtors remain stable at about £30.5k. Current liabilities also increased to £59k from £17.3k, largely due to director loans (£22k) and taxes payable. There are no long-term liabilities noted, which limits leverage but also reduces financial risk. The company holds tangible fixed assets valued at £13.2k net. Overall, the company’s balance sheet position is improving but remains modest in scale.

3. Cash Flow Assessment:
   Cash at bank has increased substantially in the latest year, suggesting improved liquidity management. Net current assets are positive at £37.5k, providing a reasonable working capital buffer. However, the presence of director’s current accounts (£22k) as part of liabilities signals reliance on related-party funding, which may affect cash flow stability. Trade creditors are modest and manageable. There is no indication of overdrafts or short-term borrowings, which supports the company’s liquidity. Continued monitoring of cash conversion cycle and debtor collections will be important to ensure ongoing liquidity.

4. Monitoring Points:

• Cash flow trends and working capital adequacy, especially given the company’s early stage and related-party funding.
• Debtor aging and credit control effectiveness to prevent cash flow strain.
• Tax liabilities and compliance given increases in tax creditors.
• Directors’ loans and any changes in related-party transactions that may signal funding risks.
• Business growth indicators such as turnover progression, employee additions, and asset investment to assess scaling ability.