Company Number: 14935482

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

1. Credit Opinion: CONDITIONAL APPROVAL
   CT Software Testing Solutions Limited is a newly incorporated micro-entity (since June 2023) with limited operating history. The latest financials show a positive net asset position and modest net current assets, indicating initial financial stability. However, the company's small scale, limited operating history, and absence of profitability data beyond balance sheet figures introduce some uncertainty. Credit approval is recommended with conditions such as monitoring financial performance over the next 12 months, ensuring continued positive cash flow, and possibly requiring personal guarantees given the single director/shareholder structure.

2. Financial Strength:
   The balance sheet as of 30 June 2024 reports fixed assets of £2,665 and current assets of £13,391 against current liabilities of £12,007, resulting in net current assets (working capital) of £1,384. Shareholders’ funds stand at £4,049, indicating the company is currently solvent with net assets exceeding liabilities. Given this is a micro-entity with just one employee, the financial base is understandably minimal but sufficient at this stage. There is no indication of significant debt burdens or off-balance sheet liabilities.

3. Cash Flow Assessment:
   Current assets just cover current liabilities, suggesting tight but positive liquidity. The small positive working capital (£1,384) implies the company can meet short-term obligations but with limited buffer. Without detailed cash flow statements or profit and loss data, it is difficult to fully assess operational cash generation, but the minimal scale and micro-entity status suggest reliance on owner funding or limited transactional volume. Close attention to cash management and receivables/payables timing is advised.

4. Monitoring Points:

• Profitability and cash flow trends in subsequent reporting periods to confirm sustainable operations.
• Changes in current liabilities and working capital position to ensure liquidity remains positive.
• Director’s continued involvement and financial support, especially as sole PSC with full control.
• Any additional borrowing or credit exposure that could impact financial stability.
• Compliance with filing deadlines and regulatory requirements to avoid penalties or reputational risk.