FINETECH CONSULTANCY LTD

Executive Summary

Finetech Consultancy Ltd is a small, active IT consultancy showing steady equity growth and a stable financial position. However, liquidity is tight with current liabilities marginally exceeding current assets, suggesting the need for cautious credit limits. Continued monitoring of working capital and cash flow is recommended to ensure credit risk remains manageable.

FINETECH CONSULTANCY LTD - Analysis Report

Company Number: 12775305

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: APPROVE with caution. Finetech Consultancy Ltd is a micro-entity IT consultancy with steady growth in net assets and shareholders’ funds over the last four years. The company is small, with only one employee (the director), and shows no overdue filings or insolvency issues. However, current liabilities slightly exceed current assets in 2023, indicating some liquidity pressure. The director appears experienced and stable. Credit facilities can be approved but with limits reflecting the modest scale and working capital constraints.

2. Financial Strength: The company's net assets have increased from £22 in 2020 to £10,417 in 2023, demonstrating an improving equity base. Fixed assets are stable (~£19.5k), while net current assets moved from positive in earlier years to a slight net current liability position (-£923) in 2023, reflecting increased short-term obligations or reduced liquid resources. Total liabilities after one year decreased from £9.4k to £5.4k, indicating some debt repayment or restructuring. Overall, the balance sheet shows moderate financial resilience but limited buffer for larger shocks.

3. Cash Flow Assessment: Current assets (£19,208) are slightly less than current liabilities (£20,131), resulting in a small working capital deficit of £923 at the 2023 year-end. This suggests tight liquidity and potential reliance on short-term financing or timely receivables collection. The company’s size and single employee status imply low operating expenses but also limited cash reserves. Cash flow monitoring is essential to ensure ongoing ability to meet short-term commitments.

4. Monitoring Points:

• Keep watch on working capital trends and liquidity ratios, especially current assets versus current liabilities.
• Monitor timely payment of creditors and any increase in short-term debt.
• Track revenue and profitability growth in future filings to ensure continued equity improvement.
• Confirm director’s ongoing involvement and any changes in company management.
• Review any increase in fixed assets or long-term liabilities for capital expenditure or financing changes.