Company Number: 13539040

Analysis Date: 2025-07-20 16:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bellingham IT Ltd is a micro-sized private limited company operating in the IT service sector with a single director and 100% ownership by that director. The company shows a positive net asset position but has experienced a notable decline in net assets from £3,495 in FY2023 to £1,322 in FY2024, indicating some financial deterioration. Current liabilities are high relative to current assets, although net current assets remain positive (£2,725). The company remains active and compliant with filing requirements, which supports ongoing operational stability. Given its small scale, recent incorporation (2021), and slight weakening financials, credit should be extended cautiously, ideally with limits aligned to the company’s modest asset base and monitored closely for any further financial deterioration.

2. Financial Strength:
   The balance sheet reveals low fixed assets (£4,380) and modest net assets (£1,322), with total liabilities (current and non-current) significant relative to assets. There is a downward trend in net assets over the last year, a warning sign that the company is not building equity. The company maintains positive working capital, but the reduction from £3,630 in FY2023 to £2,725 in FY2024 suggests tightening liquidity. Shareholders’ funds are minimal and declining, reflecting limited financial cushion to absorb shocks.

3. Cash Flow Assessment:
   Cash specifics for FY2024 are not disclosed, but FY2023 cash was £25,195, a strong indicator of liquidity at that point. Current assets roughly equal current liabilities, suggesting the company can meet short-term obligations, but the margin is narrow and deteriorating. The presence of debtors (£9,545 in FY2023) also supports short-term liquidity, assuming timely collection. However, the reduction in net current assets and increasing creditors in FY2024 requires careful monitoring to ensure ongoing cash flow adequacy.

4. Monitoring Points:

• Track net asset and equity trends to detect further erosion.
• Monitor current ratio and net current assets to ensure sufficient liquidity.
• Review cash flow statements when available for signs of stress.
• Observe any changes in credit terms with suppliers and customer payment patterns.
• Watch for any director or ownership changes that might affect governance or financial strategy.