Company Number: 14177326

Analysis Date: 2025-07-19 12:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Logic Hire Software Solutions Ltd is a very young private limited company with limited historical trading data. The small turnover (£32,300) and nominal profit (£300) indicate early-stage operations with modest scale. While the company shows positive net current assets and a clean balance sheet, the financial base is thin. The directors appear competent with relevant industry experience, but the firm’s limited financial history and low cash reserves suggest cautious credit exposure. Approve credit facilities on a conditional basis with low limits and regular financial monitoring until consistent profitability and stronger liquidity are demonstrated.

2. Financial Strength:
   The balance sheet as of 30 June 2024 shows very low total assets (£620 current assets, no fixed assets) and current liabilities of £220, yielding net current assets of £400. Shareholders’ funds stand at £400, reflecting minimal capital base. The company has no long-term debt and no accumulated losses to date, but the equity base is minimal. The absence of fixed assets indicates a service-oriented business with low capital intensity. Overall, the financial strength is weak but stable given the early stage of the business.

3. Cash Flow Assessment:
   Cash at bank is £620, which provides some immediate liquidity buffer relative to current liabilities of £220. Operating profit is marginal (£300), suggesting limited cash flow generation capacity currently. The company’s working capital is positive but very small, indicating tight liquidity conditions. The low turnover and administrative expenses near gross profit level imply little margin for unexpected expenses or downturns. Cash flow management will be critical, and the company should aim to build cash reserves as trading scales.

4. Monitoring Points:

• Monitor quarterly turnover and profit trends to confirm growth trajectory and sustainable operating margins.
• Watch cash balances and working capital closely to avoid liquidity strain.
• Review director changes and management continuity for stability.
• Assess any increase in liabilities or new borrowing that may stress the balance sheet.
• Confirm timely filing of accounts and confirmation statements to ensure compliance and transparency.