Company Number: SC704571

Analysis Date: 2025-07-20 14:30 UTC

1. Credit Opinion: APPROVE with conditions. KS Test Services Ltd demonstrates a stable financial position with positive net current assets and shareholders’ funds. The company is small-scale with a micro account category, showing consistent working capital and equity levels over the last years. However, the slight decline in net current assets and shareholders’ funds in the latest year suggests monitoring is necessary. Given the company’s short trading history (since 2021) and modest scale, credit approval should be conditional on continued positive cash flow and timely account filings.

2. Financial Strength: The balance sheet shows net current assets of £62,500 as of 31 July 2024, down from £79,121 in the prior year, and shareholders’ funds of £61,253, also decreased from £76,826. Current assets (£77,272) comfortably cover current liabilities (£31,729), indicating sound short-term solvency. The company carries no long-term liabilities reported, maintaining a clean asset base in line with a micro-entity profile. The consistency in employee count (3 employees) confirms stable operating capacity.

3. Cash Flow Assessment: The company has maintained positive working capital throughout its trading history, though there is a noticeable reduction in current assets and net current assets from 2023 to 2024. Prepayments and accrued income increased slightly, which may affect short-term liquidity timing. There is no indication of overdrafts or short-term borrowing, which supports a low-risk liquidity profile. Continued monitoring of cash inflows and outflows will be necessary given the decrease in net current assets.

4. Monitoring Points:

   • Watch for any further decline in working capital or shareholders’ funds in upcoming accounts.
   • Assess the company’s ability to maintain or increase turnover given its small size and limited employee base.
   • Confirm timely filing of accounts and confirmation statements to avoid regulatory risk.
   • Monitor any changes in director appointments or ownership that could impact governance or control.
   • Review trading performance and cash flow statements when available, to ensure continued capacity to meet obligations.