INK AND PIXEL DEVON LIMITED

Executive Summary

Ink And Pixel Devon Limited is a newly formed micro-entity with a small but positive net asset base supported by director funding. While the company shows a sound working capital position, its limited operating history and reliance on director loans introduce some credit risk. Conditional approval is advised with close monitoring of cash flow and updated financial information to confirm ongoing repayment capacity.

INK AND PIXEL DEVON LIMITED - Analysis Report

Company Number: 14525811

Analysis Date: 2025-07-20 13:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ink And Pixel Devon Limited is a recently incorporated micro-entity with limited operating history (from Dec 2022 to Mar 2024). The financials show a positive net current asset position and positive net assets, but the absolute size of the balance sheet and equity is very small (£353 net assets). The company’s director has funded the business through an unsecured, interest-free loan of £4,778, indicating reliance on internal funding. The absence of debt service history and minimal operational scale introduces some risk. Approval is recommended with conditions such as monitoring cash flow closely and requiring updated accounts before any increase in credit facilities.

2. Financial Strength:
   The company’s balance sheet is very modest, with fixed assets of £145 and current assets of £7,967 primarily likely cash or receivables. Current liabilities total £6,619, resulting in net current assets of £1,348. However, accruals and deferred income of £1,140 reduce net assets to £353, which is the shareholder equity funded mainly by the director’s loan. The company has no long-term liabilities and no external borrowings reported, which limits financial risk but also reflects a very early-stage business with limited capitalisation.

3. Cash Flow Assessment:
   The company’s working capital position is positive but narrow. The director’s loan provides liquidity support, but it is unsecured and repayable on demand, which is a potential liquidity risk if the director withdraws support. The micro-entity status means limited trading history, so cash generation from operations is not yet demonstrated. Cash flow projections and ongoing monitoring of creditor and debtor days will be essential. The absence of audit means less external validation of financial statements, increasing reliance on management information.

4. Monitoring Points:

• Track subsequent annual accounts to assess profitability and retained earnings growth.
• Monitor cash flow statements or management accounts to ensure ongoing liquidity and ability to meet short-term obligations.
• Watch director loan balances and any changes in related party transactions.
• Review any changes in current liabilities or accruals that may indicate increased operational risk.
• Confirm timely filing of accounts and confirmation statements to avoid compliance issues.