HORIZON BUSINESS TECHNOLOGIES LIMITED

Executive Summary

HORIZON BUSINESS TECHNOLOGIES LIMITED is a young but financially stable IT consultancy showing healthy growth in net assets and cash balances. Its strong working capital and prudent management support an ability to meet credit obligations. Initial credit approval is recommended with moderate limits and regular monitoring of receivables and liabilities to ensure ongoing liquidity and operational resilience.

HORIZON BUSINESS TECHNOLOGIES LIMITED - Analysis Report

Company Number: 13480963

Analysis Date: 2025-07-29 18:27 UTC

1. Credit Opinion: APPROVE with positive outlook
   HORIZON BUSINESS TECHNOLOGIES LIMITED demonstrates sound financial fundamentals and steady growth since incorporation in 2021. The company holds a strong net current asset position and positive net assets with no overdue filings or adverse director conduct. The owner/director maintains full control and appears to manage the business prudently. Given the positive liquidity and increasing net assets, the company is assessed capable of servicing typical credit facilities. However, being a relatively young and small IT consultancy with limited operating history, credit limits should be moderate initially and reviewed as trading history extends.

2. Financial Strength:

• Net assets increased from £44.9k in 2023 to £52.5k in 2024, indicating growth in retained profits and equity.
• Current assets rose to £72.3k in 2024, mainly driven by cash increasing to £64.8k, a significant improvement from £27.5k in 2023.
• Current liabilities remain stable around £19.8k, resulting in strong net current assets of £52.5k (2024) providing comfortable short-term solvency.
• The balance sheet is clean with minimal trade creditors (£536) and manageable tax and social security liabilities.
• Share capital is minimal (£1), reflecting a small private company structure with all equity built through retained earnings.

3. Cash Flow Assessment:

• Cash position improved substantially year-over-year, more than doubling from £27.5k to £64.8k, reflecting good cash generation and working capital management.
• Debtors decreased sharply from £37k to £7.5k, suggesting improved collections or a shift in client payment terms.
• Current liabilities are well covered by cash and receivables, indicating no liquidity stress.
• The company’s working capital position is strong and stable, supporting operational needs without reliance on external funding currently.

4. Monitoring Points:

• Monitor debtor days and receivables aging to ensure consistent cash inflow as the business grows.
• Watch tax and social security liabilities as they form the bulk of current liabilities; delays or spikes could signal cash flow issues.
• Track revenue and profit trends in future accounts to confirm sustainable growth beyond the initial years.
• Evaluate any changes in director or ownership to assess continuity of management quality.
• Review appointment of additional employees and impact on payroll liabilities and cash flow.