FLEXCONE INFOTEC LTD

Executive Summary

FLEXCONE INFOTEC LTD has demonstrated strong balance sheet growth and sound equity financing, with no current liabilities and substantial fixed asset investment. The company’s small scale and improving net assets support credit approval, though cash flow details should be verified to confirm ongoing liquidity. Regular monitoring of profitability and working capital is advised to mitigate risk as the business expands.

FLEXCONE INFOTEC LTD - Analysis Report

Company Number: 12940540

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: APPROVE with Monitoring
   FLEXCONE INFOTEC LTD shows strong asset growth and improved net assets over the last three years, signalling positive financial development. The company’s micro-entity status and single-employee operation imply a small scale but manageable risk profile. The absence of current liabilities and significant increase in fixed assets suggest sound financial management and investment in long-term capabilities. However, limited financial details on profitability and cash flow generation necessitate ongoing monitoring.

2. Financial Strength:
   The balance sheet demonstrates a robust improvement in financial strength. Net assets have increased from £3,553 in 2020 to £957,449 in 2023, driven primarily by growth in fixed assets from £15,610 to £632,553 and current assets rising to £324,895. The company has no reported current liabilities, resulting in strong net current assets of £324,895, indicating good working capital. Shareholders’ funds mirror net assets, confirming equity-financed growth without evident debt burden.

3. Cash Flow Assessment:
   While cash flow statements are not provided, current assets are almost entirely net current assets, implying liquidity is sufficient to cover short-term obligations. The company’s micro classification and minimal employee count suggest low operational overheads. However, the significant jump in fixed assets may indicate capital expenditure that should be matched by adequate cash generation or financing. Confirmation of cash flow from operations is recommended to ensure ongoing liquidity.

4. Monitoring Points:

• Profitability trends and ability to generate positive operating cash flow to support asset base.
• Working capital management to maintain liquidity given the scale of fixed asset investments.
• Any increase in liabilities or changes in creditor terms.
• Director’s management of financial controls and reporting due to small team size.
• Market conditions in the IT services sector (SIC 62090) affecting revenue stability.