Company Number: 14156435

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: APPROVE
   Pasteque Ltd demonstrates a solid financial footing for a micro-entity with a strong net asset position and significant improvement in working capital over the latest year. The company shows no signs of financial distress, has no long-term liabilities, and is actively trading under a single director’s stewardship. Given the absence of overdue filings, no contingent liabilities, and a clean financial structure, the company is creditworthy for modest credit facilities. However, as a recently incorporated micro company with one employee, credit exposure should be limited and monitored closely as the business scales.

2. Financial Strength:
   The balance sheet shows net assets of £62,567 as of 30 June 2024, up from £13,955 a year earlier, indicating healthy growth in retained earnings or capital injection. Current assets increased substantially to £76,911, while current liabilities remain low at £18,306, resulting in a strong net current asset position of £58,605. Fixed assets are minimal (£3,962), consistent with an IT consultancy business model with low capital intensity. No long-term debt or provisions exist, reflecting a clean financial structure with no hidden risks.

3. Cash Flow Assessment:
   The company’s working capital position is robust, with current assets exceeding current liabilities by over three times, suggesting good liquidity to meet short-term obligations. Cash or cash equivalents are not explicitly detailed but the high current assets imply availability of liquid resources or receivables. There is a minor director loan balance outstanding, which appears manageable and interest-free with no fixed repayment term, posing minimal risk. Overall, the company appears capable of servicing short-term commitments and potential credit lines without liquidity strain.

4. Monitoring Points:

• Monitor the company’s revenue growth and profitability as this is a young entity with limited financial history.
• Track changes in working capital and cash flow to ensure liquidity remains strong as business scales.
• Review the director loan account periodically to prevent any related party risks or cash flow constraints.
• Verify timely filing of future accounts and confirmation statements to maintain compliance and transparency.
• Watch for any large increases in liabilities or capital expenditure that may affect financial stability.