IZZ BOOK-KEEPING LTD

Executive Summary

Izz Book-Keeping Ltd operates as a micro business with stable but minimal net assets and a recurring working capital deficit. Cash reserves are modest and slightly declining, requiring prudent cash flow management. Credit approval is possible with conditions focused on liquidity monitoring and conservative credit limits.

IZZ BOOK-KEEPING LTD - Analysis Report

Company Number: 12898294

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Izz Book-Keeping Ltd is a small, single-director bookkeeping business with limited fixed assets and modest working capital. The company shows positive net assets but a recurring negative net current asset position indicating current liabilities slightly exceed current assets, which may pressure liquidity. The director is the sole shareholder and operator, which supports continuity but limits operational scale and diversification. Credit approval is possible with conditions including close monitoring of cash flow and payment punctuality, and limiting exposure to short-term credit until liquidity strengthens.

2. Financial Strength: The company’s balance sheet shows net assets of £394 as of 29 February 2024, stable but minimal equity reflecting a micro-sized business. Fixed assets (~£1,044) are minimal and mainly fixtures and fittings, depreciated over time. Total current assets (£5,504) consist entirely of cash and no debtors currently, while current liabilities are £6,154. The company has been consistently reporting negative net current assets (working capital deficit), though the deficit decreased from £842 in 2023 to £650 in 2024, showing slight improvement. Share capital is nominal at £100, and accumulated reserves are small (£294). Overall, the financial position is fragile but stable, typical of a small sole-trader style entity.

3. Cash Flow Assessment: Cash at bank decreased from £6,064 in 2023 to £5,504 in 2024, a reduction of approximately 9%, which could indicate tighter liquidity. The absence of trade debtors in 2024 contrasts with £1,500 previously, suggesting either better cash collection or reduced sales on credit. The current liabilities remain significant relative to cash, creating a working capital deficit. The company’s ability to meet short-term obligations depends heavily on cash management and timing of creditor payments. With only one employee (the director), overheads are likely low, reducing cash burn risk. However, limited cash buffers and ongoing liabilities require careful monitoring.

4. Monitoring Points:

• Continued tracking of liquidity ratios, particularly current ratio and quick ratio.
• Regular review of cash flow forecasts to ensure obligations can be met.
• Watch for any increase in current liabilities or sudden drop in cash reserves.
• Monitor director’s ongoing involvement and any changes in business scale or credit terms.
• Assess timing and adequacy of payments to suppliers and tax authorities.
• Evaluate any changes in business environment impacting client payments or turnover.