ESQUARE IT SOLUTIONS LTD

Executive Summary

ESQUARE IT SOLUTIONS LTD shows solid financial health with increasing net assets and strong working capital, supporting its ability to service debt. The recent investment in fixed assets indicates growth; however, the long-term creditor balance warrants monitoring. Overall, the company’s financial position and stable management support a credit approval at this stage.

ESQUARE IT SOLUTIONS LTD - Analysis Report

Company Number: 12465330

Analysis Date: 2025-07-29 21:06 UTC

1. Credit Opinion: APPROVE
   ESQUARE IT SOLUTIONS LTD demonstrates solid financial stability for a micro-entity operating in IT consultancy. The company has shown a significant increase in fixed assets and net assets in the latest financial year, indicating investment and growth. Current liabilities are well covered by current assets, and although there is a long-term creditor balance, the company’s net asset position and positive working capital support its ability to meet debt obligations. The absence of overdue filings and a stable director team further supports creditworthiness.

2. Financial Strength:
   The company’s net assets nearly doubled from £20,296 in 2023 to £39,190 in 2024, driven largely by an increase in fixed assets from £1,082 to £51,782. This asset growth suggests capital expenditure or acquisition of longer-term resources, strengthening the balance sheet. Current assets increased moderately, improving liquidity. However, the presence of £38,123 in long-term creditors at year-end 2024 should be monitored for repayment terms. Equity funding remains minimal (£2 share capital) but shareholders’ funds have increased due to retained earnings or asset revaluation.

3. Cash Flow Assessment:
   Net current assets improved from £19,214 to £25,531, reflecting positive working capital management. Current liabilities are comfortably covered by current assets, indicating good short-term liquidity. The company employs only 2 staff, indicating low fixed overheads, which supports cash flow stability. No information on profit and loss is available, so cash flow from operations cannot be fully assessed, but the stable and increasing net assets and working capital suggest adequate cash generation or funding.

4. Monitoring Points:

• The nature and repayment schedule of the £38,123 long-term creditors should be clarified to assess potential cash flow pressures.
• Watch for any changes in working capital trends or current liabilities that could tighten liquidity.
• Monitor the company’s revenue and profitability trends in future accounts filings to confirm ongoing earnings quality.
• Maintain oversight of director conduct and company status filings to ensure compliance and operational continuity.