EMPIRICAL SOLUTIONS LIMITED

Executive Summary

Empirical Solutions Limited exhibits stable and improving financial health with positive equity growth and sufficient working capital. The company’s micro-entity status and steady asset increases support its capacity to meet credit obligations. Ongoing monitoring should focus on liquidity and operational cash flow to maintain creditworthiness.

EMPIRICAL SOLUTIONS LIMITED - Analysis Report

Company Number: 12908779

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: APPROVE
   Empirical Solutions Limited demonstrates a stable and improving financial position with positive net assets and net current assets increasing year-on-year. The company operates within the micro-entity threshold, indicating a small-scale operation with limited complexity. There are no overdue filings or indications of financial distress. The absence of negative current liabilities and consistent growth in net assets suggests the company can meet its short-term obligations and service credit facilities responsibly.

2. Financial Strength:
   The balance sheet shows a healthy increase in fixed assets (£5,879 in 2024 vs. £5,019 in 2023) and current assets (£5,040 in 2024 vs. £2,348 in 2023), reflecting asset investment and improving liquidity. Current liabilities remain low (£4,080 in 2024) and have risen modestly compared to previous years but are well-covered by current assets, resulting in positive net current assets of £1,829 (2023: £992). Net assets have increased steadily from £2,716 in 2021 to £7,708 in 2024, indicating retained earnings and equity growth, which strengthens the company's capital base.

3. Cash Flow Assessment:
   Current assets to current liabilities ratio exceeds 1, confirming positive working capital and liquidity buffer. The increase in net current assets suggests improving cash flow management. However, as a micro-entity with only one average employee, cash flow volumes may be modest, necessitating ongoing monitoring to ensure sufficient liquidity for operational needs. No significant creditor pressure is apparent, and the company’s ability to cover short-term liabilities is sound.

4. Monitoring Points:

• Track net current assets and liquidity ratios to ensure continued coverage of current liabilities.
• Monitor any substantial changes in fixed assets or liabilities that might affect cash flow or solvency.
• Review upcoming filings and any changes in director or ownership structure.
• Assess profitability and turnover trends when available to confirm growth trajectory and debt service capacity.