INFINITE FORCE LTD

Executive Summary

Infinite Force Ltd, a recently incorporated holding company, displays sound financial health with growing equity, strong working capital, and improving cash balances. The company’s ability to generate profits and manage dividends supports creditworthiness for standard lending. Continued monitoring of debtor management and dividend policy is advised to maintain liquidity and capital stability.

INFINITE FORCE LTD - Analysis Report

Company Number: 14225594

Analysis Date: 2025-07-20 11:22 UTC

1. Credit Opinion: APPROVE
   Infinite Force Ltd demonstrates strong financial position and operational stability since incorporation in 2022. The company has generated consistent profits with significant retained earnings, maintains positive net current assets, and has low short-term liabilities. There are no overdue filings or signs of financial distress. Given the company’s holding company nature and sound balance sheet, it appears well positioned to meet financial obligations under typical credit facilities. Approval is recommended with standard monitoring.

2. Financial Strength:

• Shareholders’ funds increased from £61,184 in 2023 to £73,115 in 2024, indicating growth in equity and retained profits.
• Fixed asset investments are minimal (£1,114), consistent for a holding company, with current assets dominated by debtors (£65,353) and cash (£9,391).
• Current liabilities are low at £2,743, resulting in net current assets of £72,001, a healthy working capital position.
• The company’s profit and loss reserves grew by £11,931 (£72,105 vs £60,174), reflecting profitable trading and dividend distributions, showing balanced capital management.

3. Cash Flow Assessment:

• Cash at bank increased substantially to £9,391 in 2024 from £1,437 in 2023, improving liquidity.
• Debtors represent a significant portion of current assets; monitoring debtor ageing and collection efficiency is important to ensure cash flow stability.
• Low current liabilities and minimal creditors enhance short-term liquidity and reduce financial risk.
• Dividend payments (£173,184 in 2024) are high but supported by profits, suggesting active shareholder returns without compromising liquidity.

4. Monitoring Points:

• Debtor collection periods and credit risk concentration, given the high level of receivables relative to cash.
• Dividend policy and retained earnings balance to ensure ongoing capital adequacy.
• Profitability trends as company matures, ensuring operating income sustains cash flow.
• Directors’ conduct and governance given dual control by two directors holding equal shares and voting rights.
• Any changes in related party transactions or intercompany balances that might affect liquidity.