IT LIFE-CYCLE LIMITED

Executive Summary

IT LIFE-CYCLE LIMITED demonstrates positive financial growth with increasing net assets and working capital over three years, supported by strong director control and governance. While liquidity is adequate, the company’s cash position is modest relative to receivables, necessitating careful management of debtor collections. Approval for credit facilities is recommended with prudent limits and ongoing monitoring of cash flow and debtor performance.

IT LIFE-CYCLE LIMITED - Analysis Report

Company Number: 13601290

Analysis Date: 2025-07-29 16:57 UTC

1. Credit Opinion: APPROVE with caution. IT LIFE-CYCLE LIMITED is a newly established company (incorporated 2021) with steadily improving financial metrics. The company shows growth in net assets and working capital, indicating improving financial strength and an ability to meet short-term obligations. However, limited scale (micro/small size) and relatively low cash balances suggest some liquidity risk. The director’s 100% control and lack of adverse records support confidence in management stewardship. Approval is recommended for modest credit limits with monitoring.

2. Financial Strength: The company’s net assets increased from £1,299 in 2021 to £10,178 in 2024, indicating retained earnings accumulation and capital growth. Current assets rose to £17,955 largely due to increased debtors (£15,142), with cash at a lower level (£2,813) compared to prior years. Current liabilities are moderate at £5,861, resulting in a healthy net current asset position (£12,094). The company carries a director’s loan account of £1,916 classified as long-term creditor, which may indicate some reliance on director funding. Overall, the balance sheet shows a positive trend with no significant gearing or fixed asset commitments.

3. Cash Flow Assessment: Cash on hand decreased to £2,813 from £6,042 last year despite growth in receivables, indicating cash conversion lag or extended debtor terms. The working capital position is strong but heavily reliant on debtors. Trade creditors are minimal (£16), and tax/social security liabilities have increased (£5,845). The company’s ability to generate positive operating cash flow from its receivables will be critical to maintain liquidity. The micro scale and single employee status suggest low overheads, which supports cash flow sustainability but requires close monitoring of debtor collections.

4. Monitoring Points:

• Debtor collection periods and aging profile to ensure receivables convert to cash promptly.
• Director’s loan account balance and any changes in funding structure.
• Profitability trends and cash flow statements in future filings to confirm operational cash generation.
• Any changes in company size or credit exposure that might affect risk profile.
• Compliance with filing deadlines remains good, but ongoing monitoring of regulatory adherence is advised.