COGENTIX SYSTEMS LTD

Executive Summary

Cogentix Systems Ltd is a micro-sized, early-stage IT consultancy with positive net assets and working capital, indicating a sound short-term liquidity position and no external debt. The company’s financials and governance structure support credit approval, although limited historical data advises ongoing monitoring of financial performance and liquidity metrics. Overall, the company presents a low-risk profile consistent with a start-up in its sector.

COGENTIX SYSTEMS LTD - Analysis Report

Company Number: 14987581

Analysis Date: 2025-07-29 19:03 UTC

1. Credit Opinion: APPROVE
   Cogentix Systems Ltd is a recently incorporated micro-entity with a clean status (active, no overdue filings, no liquidation) and a sole director with full control. The company’s financials show positive net assets and net current assets, indicating a stable short-term liquidity position and equity base. Given the micro-size and early stage, limited financial history constrains risk assessment, but current data supports credit approval with standard monitoring.

2. Financial Strength:
   The balance sheet as of 31 July 2024 shows fixed assets of £1,998 and current assets of £19,304 against current liabilities of £11,356, resulting in net current assets (working capital) of £7,948. Total net assets stand at £9,946, fully represented by shareholders’ funds, reflecting no external debt and a clean equity position. This small but positive equity base is typical for a micro start-up and suggests sound financial stewardship to date.

3. Cash Flow Assessment:
   The company’s working capital position (~£7.9k) indicates adequate short-term liquidity to meet current obligations. While detailed cash flow statements are not provided, the positive net current assets and absence of overdraft or creditor issues suggest manageable cash flow. The single employee/director structure implies low fixed overheads, aiding cash conservation. Continued monitoring of receivables and payables aging will be critical as the business grows.

4. Monitoring Points:

• Track revenue growth and profitability in subsequent accounts to confirm business viability and cash generation.
• Monitor current liabilities relative to current assets to ensure liquidity remains positive.
• Review director’s credit and conduct records periodically to mitigate governance risks.
• Watch for any late filing of accounts or confirmation statements as indicators of potential operational stress.
• Assess impacts of market conditions on their IT consultancy niche, especially competition and client concentration.