NEW ITNEST LIMITED

Executive Summary

NEW ITNEST LIMITED shows early signs of financial recovery with reduced net losses and director confidence in growth, but its negative net assets and working capital deficit present liquidity risks. Credit approval is recommended on a conditional basis, with close monitoring of cash flow and profitability improvements before extending significant credit. The company’s lean structure and small scale require cautious exposure aligned to its current financial capacity.

NEW ITNEST LIMITED - Analysis Report

Company Number: 12596602

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NEW ITNEST LIMITED is a micro private limited company operating in IT consulting and employment placement. The company shows signs of recovery and improving financial position after prior losses, but it remains in a weak net asset position. The director expresses confidence in ongoing sales growth and profitability, which supports a conditional approval subject to monitoring. Lending should be cautious and limited to amounts consistent with the company’s current scale and cash flow.

2. Financial Strength:

• The company reported net assets of -£2,693 as of 31 May 2024, a slight improvement from -£1,322 the previous year, indicating persistent equity deficits.
• Fixed assets are minimal (£114), reflecting low capital intensity.
• Current liabilities exceed current assets, resulting in negative net current assets of -£2,807 (versus -£2,357 previously), indicating working capital constraints.
• Shareholders’ funds remain negative, though improved from prior years’ deeper deficits, showing some capital restoration or profit retention.
• No employees were reported, which may indicate outsourcing or a lean operating model.

3. Cash Flow Assessment:

• Current assets (~£7,391) mainly consist of cash and receivables, but are insufficient to cover current liabilities (£10,198). This negative working capital position poses short-term liquidity risk.
• The lack of audit and limited disclosures restrict detailed cash flow analysis, but the company appears dependent on timely collection of receivables and careful management of payables.
• The director’s confidence in sales growth suggests improving cash inflows, but this remains to be proven in subsequent filings.

4. Monitoring Points:

• Watch quarterly trading updates or interim accounts for evidence of improving profitability and cash flow.
• Monitor working capital ratios, especially current ratio and quick ratio, to ensure liquidity improves.
• Track any changes in director or shareholder funding that could alleviate capital deficits.
• Review credit terms with customers and suppliers to mitigate cash flow pressure.
• Observe any increase in employee headcount or operating scale that might impact financial needs.