Company Number: 13869132

Analysis Date: 2025-07-20 13:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CK SOLUTIONS LIMITED shows a modest but stable financial position with positive net assets and working capital. However, the decline in net assets and net current assets from £12,272 in 2023 to £6,464 in 2024 raises concerns about profitability and cash flow sustainability. The company is relatively new (incorporated in 2022) and small in scale, operating with only one employee, which implies limited diversification and potential vulnerability. Credit approval is recommended with conditions that include regular monitoring of cash flow, debtor collections, and expense management to ensure ongoing liquidity and solvency.

2. Financial Strength:
   The balance sheet indicates a small but positive net asset base of £6,464 at the latest year-end, down from £12,272 the previous year. Current assets mainly comprise cash (£12,732) and a small debtor balance (£580), while current liabilities are £6,848, mostly taxes and social security. There are no fixed assets reported. The decline in debtors from £10,080 to £580 suggests improved collections or reduced sales on credit, but also a potential drop in revenue. The company’s equity is entirely shareholder funds derived from retained earnings, reflecting a small capital base. This limited capitalisation restricts financial flexibility.

3. Cash Flow Assessment:
   Cash increased from £8,841 to £12,732, which is positive for short-term liquidity. Net current assets remain positive, indicating the company can meet its short-term obligations. However, current liabilities, mostly taxes and social security contributions, are significant relative to total assets. The small scale and single employee operation suggest tight working capital management is critical. The sharp decrease in trade debtors could be due to aggressive collection but should be monitored to ensure it is not due to lost customers or lower sales volumes. Overall, liquidity is adequate but vulnerable to downturns or unexpected expenses.

4. Monitoring Points:

• Track net assets and working capital trends to identify any further declines.
• Monitor cash balances monthly to ensure sufficient liquidity for tax and social security payments.
• Observe debtor turnover and credit terms to maintain sound cash inflows.
• Watch for any increase in trade creditors or other liabilities that could indicate cash flow stress.
• Review management actions on expense control and revenue generation given the company’s small size and limited resources.