INFLEXION POINT LIMITED

Executive Summary

INFLEXION POINT LIMITED is a newly formed micro-entity with a clean, debt-free balance sheet and positive working capital, indicating initial financial stability. The company is managed by a single director who also holds full ownership, providing clear accountability. While credit approval is recommended, exposure should be conservative and closely monitored due to limited operating history and scale.

INFLEXION POINT LIMITED - Analysis Report

Company Number: 14554216

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: APPROVE
   INFLEXION POINT LIMITED is a newly incorporated micro-entity with a clean and simple financial profile. The company shows positive net current assets and net assets, with no long-term liabilities or fixed assets, indicating a straightforward balance sheet and low financial risk. The director is also the sole significant controller, suggesting clear accountability and governance. Although the company is very early in its lifecycle, the absence of overdue filings and the presence of positive working capital support credit approval at this stage. However, given limited operating history and scale, credit exposure should be modest and monitored closely.

2. Financial Strength:
   The company’s balance sheet as of 31 December 2023 shows total current assets of £34,407 against current liabilities of £9,096, resulting in net current assets (working capital) of £25,311. There are no fixed assets or long-term liabilities, so total net assets equal working capital. Shareholders’ funds also stand at £25,311, indicating the owner’s equity fully supports the company's liabilities. The financial structure is very conservative with no debt, reflecting a sound but embryonic financial position typical for a micro-entity.

3. Cash Flow Assessment:
   Current assets are sufficient to cover short-term liabilities by almost 3.8 times, which suggests good liquidity and operational flexibility. The company employs one person and likely has low operating costs, enhancing cash flow stability. However, without detailed cash flow statements or profit and loss data, the sustainability of cash inflows cannot be fully assessed. The positive working capital position is encouraging but should be validated with future trading results.

4. Monitoring Points:

• Track revenue growth and profit margins as the company matures to ensure ongoing debt servicing capacity.
• Monitor cash flow statements once available to confirm liquidity adequacy beyond balance sheet snapshots.
• Watch for changes in director or ownership structure that could impact governance or credit risk.
• Review timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Assess any emerging liabilities or credit facilities that might alter the current debt-free status.