Company Number: 14094067

Analysis Date: 2025-07-20 16:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DATASCONE LTD is a very small, recently incorporated IT consultancy with limited financial history. The company shows positive net current assets and net equity, indicating a modestly solvent position. However, cash reserves have declined markedly from £5,221 in 2023 to £3,275 in 2024, and the company currently employs no staff, suggesting limited operational scale and possible dependence on directors’ consultancy services. The absence of debt beyond short-term liabilities is positive, but the small asset base and lack of turnover or profitability data warrant cautious credit exposure. Approval is conditional on monitoring liquidity trends and obtaining updated cash flow projections.

2. Financial Strength:
   The balance sheet at 31 May 2024 shows net assets of £2,868, down from £3,876 the prior year, reflecting a decrease in cash and current liabilities reduced from £1,370 to £407. Shareholders’ funds are equal to net assets, indicating no long-term indebtedness. No fixed assets are reported, and debtors are negligible. The company meets the micro-entity criteria, limiting external financial scrutiny. Overall, the financial strength is weak but stable, with no immediate solvency concerns. The lack of tangible or intangible assets and minimal working capital limits credit capacity.

3. Cash Flow Assessment:
   Cash at bank has reduced by approximately 37% year on year, shrinking the working capital buffer. Current liabilities are minimal and manageable. The company’s liquidity profile is tight given the small cash balance and absence of receivables. Operating cash flow details are not available, but the zero employee count suggests low overheads. The company must maintain cash inflows from consultancy operations or director funding to sustain liquidity. There is a risk that cash depletion could constrain ongoing trading if revenue generation is not maintained.

4. Monitoring Points:

• Cash position and working capital trends in subsequent periods
• Evidence of increasing turnover and profitability as company matures
• Directors’ continued financial support or external funding lines
• Any change in current liabilities or introduction of longer-term debt
• Filing of updated accounts and confirmation statements on time
• Operational activity and employee count to assess business scale and sustainability