INHOUSEW LIMITED

Executive Summary

INHOUSEW LIMITED shows a marked recovery in financial position with positive net assets and improved liquidity at year-end 2024, supporting conditional credit approval. The company remains small and asset-light, so ongoing monitoring of cash flow and working capital is essential to ensure continued creditworthiness. Continued prudent financial management will be key to sustaining this positive trajectory.

INHOUSEW LIMITED - Analysis Report

Company Number: 12775554

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   INHOUSEW LIMITED has demonstrated a significant turnaround in financial position over the most recent year, moving from net liabilities of £2,385 in 2023 to net assets of £14,906 in 2024. This improvement indicates enhanced financial management and potential for meeting short-term obligations. However, as a micro entity with minimal fixed assets and a single employee, its ability to service larger or longer-term credit facilities remains limited. Approval is therefore conditional on maintaining current business performance and monitoring liquidity closely.

2. Financial Strength:
   The balance sheet shows a strong improvement with net current assets rising from a deficit of £1,391 in 2023 to a positive £14,906 in 2024. Total net assets align with shareholder funds at £14,906, reflecting retained earnings or capital injections. Fixed assets are nil, indicating the company relies primarily on current assets (cash or receivables) rather than long-term investments. The small share capital of £3.00 is typical for micro companies but does not provide significant equity cushion.

3. Cash Flow Assessment:
   Current assets increased substantially from £2,975 to £22,499, while current liabilities rose moderately from £4,366 to £7,593, resulting in a net working capital surplus. This suggests improved liquidity and an enhanced ability to meet short-term liabilities. However, without an audit and limited employee base, cash flow volatility risk remains. The company should maintain tight control on debtor collection and creditor payment terms to preserve liquidity.

4. Monitoring Points:

• Maintain positive net current assets and monitor creditor days to ensure ongoing short-term solvency.
• Track revenue growth and profitability trends given the micro scale and limited asset base.
• Review director and related party transactions for potential financial dependence or risk concentration.
• Watch for changes in company status or delayed filings that could signal operational stress.