Company Number: 15043261

Analysis Date: 2025-07-29 15:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CQED LIMITED is a newly incorporated micro-entity with limited trading history and an active status. The balance sheet shows significant fixed assets (£427,630) but a negative net current assets position (-£28,020), indicating current liabilities exceed current assets by this amount. This raises some liquidity concerns as short-term obligations may require attention. However, net assets are strong at £399,610, reflecting substantial investment in fixed assets and shareholder funds. Given the company’s youth and modest working capital, approval for credit facilities should be conditional on obtaining up-to-date cash flow forecasts and confirmation of adequate liquidity management.

2. Financial Strength:
   The company’s balance sheet is asset-heavy with fixed assets comprising the majority of total net assets. Shareholders’ funds (£399,610) fully support the net assets, indicating a solid equity base relative to liabilities. The negative net current assets suggest reliance on long-term financing or owner funding to meet short-term obligations. Absence of audit and limited financial history (first year) limit insight into profitability and operational cash generation. The micro-entity status restricts detailed financial disclosures.

3. Cash Flow Assessment:
   Current assets are minimal (£610), mostly likely cash or receivables, which is insufficient to cover current liabilities of £28,630. This points to potential short-term liquidity strain. The company’s ability to meet immediate creditor demands depends on cash flow from operations or access to external funding. With an average of 5 employees, payroll and operational expenses may also pressure cash flow. Monitoring of working capital cycles and debtor collection will be important.

4. Monitoring Points:

• Liquidity metrics: Current ratio and quick ratio to assess short-term solvency.
• Cash flow statements and forecasts to verify operational cash generation.
• Timeliness of creditor payments and any overdue liabilities.
• Development of earnings and retention of profits to improve reserves.
• Directors’ management of working capital given negative net current assets.