Company Number: 13910533

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: APPROVE
   Invoka Consulting Limited demonstrates a positive financial trajectory with substantial growth in current assets and net assets from 2023 to 2024, reflecting an improving business position. The company shows adequate working capital and cash balances relative to its current liabilities, suggesting good short-term liquidity. The directors are experienced technology consultants, with no adverse conduct records, indicating sound management oversight. However, as a relatively new company incorporated in 2022, continued monitoring is prudent to ensure sustained performance.

2. Financial Strength:
   The company’s net assets have increased significantly from £5,316 in 2023 to £125,309 in 2024. This improvement is primarily driven by a rise in debtors (£244,783 to £1,089,958) and current assets (£511,730 to £1,413,261), while current liabilities have risen less sharply (£515,920 to £1,298,062). The tangible fixed assets are modest (£13,480) with standard depreciation policies applied. Overall, the balance sheet shows strengthening equity and working capital, with shareholders’ funds growing substantially.

3. Cash Flow Assessment:
   Cash at bank increased from £266,947 to £323,303, indicating a positive cash flow trend. The company has positive net current assets of £115,199, improving from a slight negative position previously, supporting liquidity to meet short-term obligations. Debtors are high relative to liabilities, so ongoing debtor management will be critical to maintaining liquidity. The company’s operating lease commitments of £73,944 within one year should be considered in cash flow planning but appear manageable given the current cash position.

4. Monitoring Points:

• Debtor days and collection efficiency, given the high debtor balance relative to liabilities.
• Ongoing profitability and cash conversion from operations since the full profit and loss statement is not available.
• Lease obligations and their impact on future cash flows.
• Management of growth to ensure working capital adequacy keeps pace with business expansion.
• Timely filing of accounts and returns continues as currently observed.