MHARI B IT ENTERPRISE LIMITED

Executive Summary

MHARI B IT ENTERPRISE LIMITED is a micro-entity IT consultancy exhibiting steady financial growth and positive net assets, with sufficient liquidity to meet short-term obligations. The company’s small scale and low fixed costs support its capability to service credit facilities, though ongoing monitoring of working capital and liabilities is advisable. Overall, credit approval is recommended based on current financial health.

MHARI B IT ENTERPRISE LIMITED - Analysis Report

Company Number: 14154588

Analysis Date: 2025-07-29 15:52 UTC

1. Credit Opinion: APPROVE
   MHARI B IT ENTERPRISE LIMITED demonstrates stable financial position with a positive trend in net assets and net current assets over the past two years. The company maintains adequate working capital and low fixed assets consistent with its micro-entity size and IT consultancy activities. There are no overdue filings or compliance issues. Given its small scale and demonstrated ability to maintain positive net current assets, the company is judged capable of meeting short-term obligations and servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows gradual growth in net assets from £8,229 in 2023 to £10,891 in 2024. Current assets increased by about 26% to £45,280 while current liabilities also rose but at a slower pace, resulting in improved net current assets from £7,262 to £10,408. Fixed assets are minimal (£483), typical for an IT consultancy with low capital expenditure needs. Shareholders’ funds equal net assets, indicating no long-term debt. The company exhibits a sound equity base relative to its size.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables, supporting liquidity. The net current asset position of £10,408 provides a buffer against short-term liabilities of £34,873. The positive working capital and absence of long-term borrowings suggest manageable liquidity risk. The single-employee operation limits fixed overheads, reducing cash flow pressure. However, the relatively tight current liabilities require ongoing monitoring to ensure obligations are met promptly.

4. Monitoring Points:

• Continued maintenance or growth of net current assets to preserve liquidity
• Timely settlement of current liabilities to avoid cash flow strain
• Watch for any material changes in operating scale or staffing that might impact costs
• Monitor receivables collection periods and client concentration risks
• Ensure continued compliance with filing deadlines and regulatory requirements