ITECH RESTORE LTD

Executive Summary

ITECH RESTORE LTD is an early-stage micro entity with minimal equity and modest liquidity. While current assets exceed short-term liabilities, the thin capital base and limited operating history constrain credit risk appetite. Conditional credit approval is recommended with emphasis on close monitoring of financial performance and working capital management as the company grows.

ITECH RESTORE LTD - Analysis Report

Company Number: 15113117

Analysis Date: 2025-07-19 12:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ITECH RESTORE LTD is a very recently incorporated micro entity with modest financial figures and limited operating history (just over one year). The company demonstrates positive net current assets, indicating some short-term liquidity, but total net assets are minimal (£376), reflecting a very thin equity base. The company’s ability to service debt is currently constrained by its size and limited financial reserves. Given the nascent stage of the business and limited track record, credit approval should be conditional on ongoing monitoring of cash flow and profitability trends as the company establishes operations and builds working capital.

2. Financial Strength:
   The balance sheet shows current assets of £28,619 against current liabilities due within one year of £4,528, producing net current assets of £24,091. However, there are also creditors due after more than one year totaling £23,715, which reduces total net assets to a marginal £376. This extremely low equity base indicates the company is effectively operating at break-even capital levels and may lack a buffer to absorb financial shocks. The company is classified as a micro entity with only one employee, consistent with early-stage enterprise status.

3. Cash Flow Assessment:
   The company’s net current asset position suggests some short-term liquidity to cover immediate obligations. However, with limited fixed assets and a very small equity cushion, working capital is tight. No detailed cash flow statement is available, but given the low net assets, the company’s cash flow generation is likely minimal and will require careful management. The presence of creditors due after one year totaling nearly as much as the net current assets signals potential medium-term cash flow demands.

4. Monitoring Points:

• Monitor upcoming accounts and confirmation statement filings to ensure timely compliance and financial transparency.
• Track growth in revenue and profitability to assess improvement in equity and cash flow generation.
• Watch working capital trends, particularly any increase in current liabilities or delayed receivables.
• Review director changes and management stability, noting the recent short tenure of one director and resignation of another.
• Evaluate any changes in ownership or PSC structure for impact on financial control.