IMPACT DEN LTD

Executive Summary

Impact Den Ltd is a micro private limited company in its first financial year showing solid net assets and working capital, supported by a single experienced director with full control. The company demonstrates the financial capacity to meet short-term obligations, suggesting initial creditworthiness. Given its start-up status, cautious approval with ongoing monitoring of financial performance and liquidity is recommended.

IMPACT DEN LTD - Analysis Report

Company Number: 15333679

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

1. Credit Opinion: APPROVE
   Impact Den Ltd is a newly incorporated micro private limited company with its first set of accounts filed timely, showing positive net current assets and net equity. The company’s financials demonstrate initial capital adequacy and positive working capital, indicating capacity to meet short-term obligations. The sole director and 100% shareholder shows clear control and accountability, reducing governance risk. However, as a start-up with limited operating history, credit exposure should be moderate and monitored closely.

2. Financial Strength:
   The company’s balance sheet at 31 December 2024 shows current assets of £18,421 against current liabilities of £3,988, resulting in net current assets of £14,433. Total net assets and shareholders’ funds stand at £13,878, reflecting a healthy equity position for a micro entity. No long-term liabilities are reported, indicating a clean capital structure without debt burden. The company appears adequately capitalized relative to its size and sector.

3. Cash Flow Assessment:
   Current assets primarily represent cash or cash equivalents and receivables, supporting liquidity. The working capital surplus of £14,433 suggests sufficient short-term resources to cover immediate liabilities. Accruals and deferred income of £555 are minimal and unlikely to strain liquidity. Given the small scale and single-employee structure, cash flow requirements are expected to be modest, but ongoing monitoring of cash generation as business activities expand is essential.

4. Monitoring Points:

• Track revenue growth and profitability trends as the company moves beyond start-up phase.
• Monitor working capital fluctuations and cash conversion cycles to ensure sustained liquidity.
• Review director’s ability to inject additional capital if required or secure external finance.
• Assess any changes in liabilities, particularly if long-term debt is introduced.
• Observe compliance with filing deadlines and governance standards.