IT SUPPORT SERVICES TEAM LIMITED

Executive Summary

IT SUPPORT SERVICES TEAM LIMITED is currently in a weak financial position with negative net assets and significant net current liabilities, indicating poor liquidity and limited ability to service debt. Given the small scale of operations and lack of equity support, credit facilities are not recommended at this time. Close monitoring of liquidity improvements and cash flow generation is essential before reconsidering credit risk exposure.

IT SUPPORT SERVICES TEAM LIMITED - Analysis Report

Company Number: 13103997

Analysis Date: 2025-07-20 12:06 UTC

1. Credit Opinion: DECLINE
   IT SUPPORT SERVICES TEAM LIMITED demonstrates a negative working capital position and net liabilities based on the micro-entity accounts for 2023. The current liabilities exceed current assets by £27,456, resulting in net current liabilities and a negative net asset position of £16,536. This indicates a stressed liquidity position and insufficient short-term assets to meet obligations as they fall due, raising significant questions about the company’s ability to service and repay debt. The company is still small with only one employee and minimal fixed assets (£10,920), which limits operational flexibility. Although the company has shown some increase in current assets from the prior year, liabilities have grown disproportionately. There is no information on profitability or cash flow generation, but the balance sheet suggests a weak financial footing and high risk. The sole director and 100% owner controls the company, but there is no indication of additional capital injection or external financial support. Given these factors, it is prudent to decline credit facilities until the company improves its liquidity and overall financial health.

2. Financial Strength:
   The company’s balance sheet is weak, reflecting negative net assets of £16,536 as of the 2023 year-end. Despite stable fixed assets, current liabilities have increased significantly to £43,814, outpacing current assets of £16,358. This results in net current liabilities of £27,456, indicating poor working capital management and potential liquidity stress. Shareholders’ funds are negative, which signals accumulated losses or cash shortfalls. The micro-entity status and minimal share capital (£1) further constrain equity support. This thin capital base and negative equity position reduce the company’s resilience to economic shocks or unforeseen expenses.

3. Cash Flow Assessment:
   While explicit cash flow statements are not provided, the balance sheet indicates potential cash flow difficulties. The large current liabilities relative to current assets imply ongoing cash outflows exceeding inflows or delayed receivables collection. The company’s ability to generate positive operating cash flow is questionable given the negative working capital. The presence of only one employee and small asset base limits operational scale, possibly restricting revenue generation. Without evidence of external financing or improved cash management, liquidity risk remains high.

4. Monitoring Points:

• Track improvements in net current assets and reduction of current liabilities.
• Monitor cash flow statements for positive operating cash flow generation.
• Review profitability and retained earnings trends to assess movement towards positive equity.
• Watch for director or shareholder capital injections to strengthen financial position.
• Confirm timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Assess any changes in operational scale or customer base that may impact revenue and cash flow.