INNOVATIVE EMBEDDED SOLUTIONS LIMITED

Executive Summary

Innovative Embedded Solutions Limited presents a low solvency and liquidity risk profile based on its positive net current assets, increasing equity, and adequate cash reserves. The company complies with filing requirements and shows operational control under a single director-owner. Key concerns include the sharp rise in current liabilities and concentration of operational responsibility, which merit further review to ensure ongoing business stability and creditor relationship management.

INNOVATIVE EMBEDDED SOLUTIONS LIMITED - Analysis Report

Company Number: 13607074

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets, increasing net assets and shareholder funds over recent years, and no overdue filings or liquidation status. These factors indicate a stable financial position with low solvency or liquidity risk at this stage.

2. Key Concerns:

• Current liabilities have roughly doubled from approximately £19.7k in 2023 to £39.2k in 2024, a notable increase that warrants monitoring for potential short-term liquidity pressure.
• Trade creditors and other creditors have increased substantially, especially "other creditors" rising from £286 to £14,909, which may indicate deferred payments or accruals requiring clarification.
• The company operates with a single employee (the director) which may raise operational sustainability questions if scaling or continuity issues arise.

3. Positive Indicators:

• Positive net current assets of £27,595 in 2024 up from £23,783 in 2023, showing working capital strength.
• Cash balances increased significantly from £34,082 to £58,743, supporting liquidity.
• Consistent growth in shareholders' funds (equity) from £11,408 at incorporation in 2021 to £27,595 in 2024 reflects retained earnings and capital stability.
• No overdue statutory filings; the company maintains compliance with Companies House deadlines.
• The sole director holds 75-100% ownership, indicating clear control and decision-making authority.

4. Due Diligence Notes:

• Investigate the nature and terms of the "other creditors" balance which increased markedly to £14,909 as of 2024 year-end. Understanding if these are trade payables, accrued expenses, or loans is important.
• Review cash flow statements (not provided) or management accounts to assess ongoing liquidity and cash conversion cycle given the growth in liabilities.
• Confirm the sustainability of business operations given only one employee (the director) and evaluate plans for scaling or risk mitigation in case of absence or incapacity.
• Verify the director’s background and creditworthiness, although no disqualification or adverse records are present.
• Confirm whether income and profitability trends are consistent with retained earnings growth and ensure no significant contingent liabilities exist.