Company Number: 12762218

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: APPROVE with caution. CADTEK DESIGN LIMITED shows a stable financial position with positive net assets and consistent working capital over recent years. As a micro-entity operating in specialised design activities, it maintains a modest but improving balance sheet. The company is active, filing returns and accounts on time, and shows no signs of financial distress or overdue liabilities. However, given the small scale, limited employee base (average 1 employee), and absence of audit, credit limits should be conservative and monitored regularly.

2. Financial Strength: The company’s net assets increased from £29,467 in 2022 to £31,699 in 2023, indicating gradual growth in equity. Current assets rose to £37,700 in 2023 from £33,917 in 2022, while current liabilities increased slightly but remain low (£5,144 in 2023). Net current assets remain strong at £32,556, reflecting healthy working capital. There are small provisions and accruals, but these do not materially impair financial strength. Overall, the balance sheet is robust for a micro-business, with no significant debt or leverage.

3. Cash Flow Assessment: Current assets primarily consist of cash and receivables, sufficient to cover current liabilities by over 7 times, indicating very good short-term liquidity. Working capital is stable and positive throughout the 4-year history. The company’s minimal employee count and small scale reduce fixed overhead risk, supporting cash flow stability. Although detailed cash flow statements are not available, the maintained net current asset position and absence of overdue payables suggest adequate liquidity to service debts and operational costs.

4. Monitoring Points:

• Monitor turnover and profitability trends as future filings become available to ensure ongoing cash generation.
• Watch current liabilities relative to current assets to detect any liquidity deterioration.
• Keep track of director changes or control shifts, especially since one PSC resigned in 2022; governance stability is important.
• Confirm that operating cash flow remains positive to support working capital needs.
• Ensure compliance with filing deadlines continues to avoid penalties or regulatory issues.