FIRST TASK PROFESSIONAL LIMITED

Executive Summary

First Task Professional Limited demonstrates strong balance sheet growth and healthy working capital, supporting its ability to meet credit obligations. The recent increase in borrowing is manageable but requires close monitoring of cash flow and debtor collections. Overall, credit approval is recommended conditionally with ongoing review of liquidity metrics.

FIRST TASK PROFESSIONAL LIMITED - Analysis Report

Company Number: SC710958

Analysis Date: 2025-07-29 16:16 UTC

1. Credit Opinion: APPROVE with conditions.
   First Task Professional Limited shows strong growth in net assets and working capital over the last two years, indicating improving financial health and capacity to service debt. The company’s recent increase in bank borrowings (£260,869) warrants monitoring; however, current assets and net current assets comfortably cover liabilities, including the new debt. Management appears stable with three directors actively engaged. Credit approval is recommended with a condition to monitor liquidity and borrowing levels closely in the next 12 months.

2. Financial Strength:
   The balance sheet reflects a healthy upward trajectory. Net assets increased from £67,954 in 2023 to £308,289 in 2024, driven principally by a substantial rise in current assets (from £126k to £753k). Fixed assets remain minimal and stable (~£1,200), appropriate for the company’s activity in employment placement services. Shareholders’ funds have increased correspondingly, showing retention of profits or capital injection. The company is classified as a small entity but is growing rapidly, with no indication of over-leverage yet.

3. Cash Flow Assessment:
   Cash at bank declined slightly from £69,089 to £42,808, but overall liquidity remains strong due to large debtors (£710,668). Current liabilities rose significantly to £446,422, largely due to bank borrowings (£260,869) and taxation/social security liabilities (£158,322). Net current assets remain positive at £307,054, indicating adequate working capital. The company’s ability to convert debtors into cash timely will be critical to maintain liquidity and meet short-term obligations.

4. Monitoring Points:

• Track debtor aging and cash conversion cycles to ensure liquidity is maintained given the high debtor balance.
• Monitor bank borrowing levels and repayment schedules to avoid overextension of credit facilities.
• Review taxation and social security payable for timely settlement to avoid penalties or cash flow strain.
• Watch for any significant changes in director appointments or control that could impact governance or financial strategy.