Company Number: 13191869

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   INNOV8TIVE LTD demonstrates a stable micro-entity profile with consistently positive net assets and working capital over the past four years. However, recent year-end figures show a decline in shareholders’ funds from £106,130 (2024) to £90,418 (2025) and an increase in current liabilities, which warrants monitoring. Given the company’s small size, limited fixed assets, and modest equity base, credit facilities should be cautiously structured with appropriate covenants and regular financial reviews.

2. Financial Strength:
   The company’s balance sheet shows minimal fixed assets (£2,760 in 2025), reflecting a low capital-intensive business consistent with financial management activities (SIC 70221). Current assets remain robust (£188,143), primarily comprising cash or receivables, comfortably exceeding current liabilities (£56,610), resulting in positive net current assets and liquidity. The decline in equity (£90,418 in 2025 vs. £106,130 in 2024) suggests some erosion of retained earnings or increased liabilities, but overall net assets remain positive and sufficient for a micro-entity.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a substantial margin, indicating sound short-term liquidity and working capital management. The company maintains a net current asset position (~£131,533 = £188,143 - £56,610), which supports its operational cash flow needs. Director advances outstanding (£9,130) may represent a minor related-party loan, which should be reviewed for any repayment terms affecting cash availability. The absence of audit and reliance on micro-entity reporting reduces insight into detailed cash flow, so monitoring cash movements quarterly is advisable.

4. Monitoring Points:

• Decline in shareholders’ funds and increase in current liabilities in the latest year—monitor for continuing erosion or reversal.
• Director’s loan balance and any related-party transactions that could impact liquidity or creditworthiness.
• Timely filing of accounts and confirmation statements to avoid compliance risks.
• Cash flow trends beyond year-end balances to ensure ongoing liquidity management.
• Business performance indicators tied to the financial management sector and client concentration risks.