Company Number: 13967232

Analysis Date: 2025-07-29 14:34 UTC

1. Credit Opinion: APPROVE with caution. Elevated You Ltd shows a strong turnaround in financial position within two years of operation, moving from negative net assets of £6,548 in 2023 to positive net assets of £12,648 in 2024. The company is still micro-sized and young, so while it demonstrates improving financial health and effective management, the limited operating history and small scale warrant cautious credit exposure. The directors appear actively involved, and no adverse governance flags are noted.

2. Financial Strength: The balance sheet shows significant improvement. Fixed assets increased modestly from £3,014 to £4,756, while current assets grew markedly from £3,362 to £35,683, driven likely by cash or receivables. Current liabilities rose but at a slower rate, resulting in a positive net working capital of £7,892 (2023: negative £9,562). Shareholders’ funds moved from negative to positive, indicating retained earnings or capital injections improving solvency. The micro-entity status limits detail but the financial position is now sound with a positive equity base and adequate asset coverage.

3. Cash Flow Assessment: Current assets well exceed current liabilities, a good liquidity indicator. The net current assets position suggests sufficient short-term resources to meet obligations. The increase in current assets may reflect cash or trade debtors, supporting operational liquidity. With just two employees and a micro scale, working capital needs are likely modest. However, absence of detailed cash flow statements means ongoing cash generation and operational cash conversion should be monitored closely.

4. Monitoring Points:

• Maintain positive net working capital and monitor cash flow timing to avoid liquidity stress.
• Track revenue growth and profitability trends to confirm sustainability beyond initial positive swing.
• Watch for changes in director control or ownership that could impact governance.
• Monitor overdue filings or negative changes in credit behavior given early-stage company risk.
• Review future financial statements for continued improvement or stability in equity and asset quality.