INNOV MANAGEMENT LTD

Executive Summary

Innov Management Ltd is a small, early-stage IT consultancy and wholesale business with modest net assets and a positive but tight working capital position. Credit approval is recommended on a conditional basis, focusing on close monitoring of cash flow and debtor collections. The company demonstrates compliance and some financial stability but remains vulnerable due to its limited scale and low cash reserves.

INNOV MANAGEMENT LTD - Analysis Report

Company Number: 13754652

Analysis Date: 2025-07-29 17:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Innov Management Ltd is a relatively new private limited company with limited financial history, incorporated in late 2021. The latest accounts show a small but positive net asset position (£4,353) and positive working capital (£4,353). The company has no overdue filings, which reflects good compliance and governance. However, the business scale is very modest, with low cash balances (£783) and modest trade debtors (£21,600). The company’s ability to service debt depends heavily on timely collection of receivables and controlling short-term liabilities. Credit approval should be conditional on monitoring cash flow closely and ensuring debtors are collected as forecast. Given the small scale and early stage, credit limits should be conservative with regular reviews.

2. Financial Strength:
   The balance sheet shows limited fixed assets and is dominated by current assets comprised mainly of trade debtors (£21,600) with minimal cash reserves. Current liabilities of £18,030 mostly include other creditors and tax liabilities. Net current assets are positive but modest, indicating a narrow buffer to cover short-term obligations. Shareholders’ funds increased from £100 in 2022 to £4,353 in 2023, showing some retained earnings accumulation. The company is classified as a small entity, with financials consistent with early-stage operations. There is no indication of long-term debt or significant financial leverage.

3. Cash Flow Assessment:
   Cash at bank is very low (£783), which may constrain operational flexibility. The company relies heavily on debtor collections to maintain liquidity. With current liabilities at £18,030 and cash plus debtors totaling £22,383, the working capital position is positive but tight. The ability to convert receivables into cash promptly is critical. There is no detailed cash flow statement, but the small size and minimal cash suggest vulnerability to payment delays or unexpected expenses. Working capital management and short-term liquidity should be monitored closely.

4. Monitoring Points:

• Collection period of trade debtors: monitor aging of receivables to limit credit risk.
• Cash balances and liquidity on a monthly basis to ensure sufficient funds for liabilities.
• Changes in creditor balances, especially tax and social security, which may indicate cash flow stress.
• Profitability trends as future accounts become available to assess growth or erosion of reserves.
• Any material changes in director or ownership structure that could impact governance or risk profile.