EXALTARE TECH SOLUTIONS LTD

Executive Summary

EXALTARE TECH SOLUTIONS LTD demonstrates modest financial strength with positive net assets and no long-term liabilities but has experienced a material decline in liquidity and working capital during its early years. The company’s ability to service credit relies on stabilizing cash flow and securing ongoing business, warranting conditional approval subject to monitoring cash flow and revenue development. Close attention should be paid to cash management and dividend policies to ensure continued financial resilience.

EXALTARE TECH SOLUTIONS LTD - Analysis Report

Company Number: 14075637

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   EXALTARE TECH SOLUTIONS LTD is a newly established private limited company (incorporated April 2022) operating in IT consultancy. The company shows net assets of £19,837 as of April 2024, down from £48,170 the prior year, reflecting a significant reduction in working capital and cash reserves. While the company is active and compliant with filings, its financial scale is small with limited tangible assets and no trade debtors at the latest year-end, suggesting low current trading activity or delayed revenue recognition. The director’s equity stake is strong (75-100%), indicating committed ownership. Given the small size and shrinking liquidity, credit approval would depend on additional assurance such as confirmed contracts or personal guarantees to mitigate risk.

2. Financial Strength:

• Net Assets: £19,837 (decreased from £48,170)
• No fixed assets, indicating intangible-heavy or service-based business model
• Decline in cash from £59,831 to £23,397 and elimination of debtors (£10,450 to £0) year-over-year
• Current liabilities reduced from £22,111 to £3,560, improving short-term solvency ratios
• Retained earnings and shareholder funds correspond with net assets, no long-term liabilities reported
  The balance sheet shows a modest but positive net asset base with no long-term debt, which reduces financial risk. However, the sharp decline in cash and absence of receivables raise questions on cash flow sustainability.

3. Cash Flow Assessment:

• Cash reserves decreased by approximately £36,000 over the year
• Absence of debtors may indicate slower client payments or lack of new contracts
• Current liabilities are low and manageable, with no overdue creditor payments reported
• Net current assets remain positive (£19,837), indicating working capital sufficiency at balance sheet date
• Dividend payments of £39,036 during the year suggest distributions exceeding profits, potentially stressing liquidity
  Overall, liquidity is adequate to cover short-term obligations but cash flow volatility is a concern, especially with dividend outflows exceeding profit generated.

4. Monitoring Points:

• Monitor cash flow statements and debtor turnover closely to confirm sustainable revenue generation
• Track any new contracts or client acquisition to ensure future inflows
• Watch for further reductions in cash or net assets that could impair repayment ability
• Review dividend policy and retained earnings to safeguard working capital
• Confirm director’s ongoing financial support or external funding arrangements if applicable
• Keep an eye on timely filing of accounts and returns to avoid regulatory penalties