MAGNA TECH CONSULTING GROUP LIMITED

Executive Summary

Magna Tech Consulting Group Limited, a newly established micro-entity IT consultancy, currently demonstrates a solid financial footing with positive net assets and working capital. The company maintains good governance and compliance, supporting an approval for credit consideration with prudent monitoring due to its early stage and limited trading history. Continued observation of financial performance and liquidity metrics is recommended as the business develops.

MAGNA TECH CONSULTING GROUP LIMITED - Analysis Report

Company Number: 15053365

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: APPROVE
   Magna Tech Consulting Group Limited is a newly incorporated micro-entity, active and compliant with filing obligations. The company’s balance sheet shows a positive net asset position with net current assets of £2,426 and total net assets of £7,943. Given its micro-entity status and lack of employees, the business appears to be at an early stage, but the current financial position suggests low financial risk. The directors have maintained proper accounting records and timely filings, indicating sound governance. The company’s ability to repay credit is supported by its positive working capital and shareholder equity, though credit exposure should be moderate given limited trading history.

2. Financial Strength:
   The company’s balance sheet reflects modest fixed assets (£5,517) and current assets (£6,083) against current liabilities of £3,657, resulting in positive net current assets (£2,426). Net assets equal shareholders funds at £7,943, indicating no external debt or long-term liabilities reported. This healthy equity base for a micro-entity suggests a stable capital structure with no gearing. However, the small scale and absence of employees imply limited operational capacity and possibly low revenue generation to date.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £2,426, demonstrating sufficient short-term liquidity to meet obligations due within the year. The absence of reported cash flow statements or turnover data limits a detailed cash flow analysis. However, the positive working capital indicates the company is not facing immediate liquidity pressures. The lack of employees and small asset base suggest limited ongoing cash outflows, supporting stable cash management in the short term.

4. Monitoring Points:

• Monitor future annual accounts filings for revenue growth, profitability, and cash flow generation as the company matures.
• Watch for any increase in current liabilities that could strain liquidity.
• Review director appointments and any changes in ownership or control for governance stability.
• Assess credit exposure prudently given limited financial history and small size.
• Track any operational scale-up that might increase financial risk or capital needs.