PASTEQUE LTD

Executive Summary

Pasteque Ltd is a small but financially stable IT consultancy with improving net assets and strong liquidity. The company’s clean balance sheet and absence of debt support its ability to service modest credit facilities. Continued monitoring of growth and cash flow will ensure ongoing creditworthiness as the business develops.

PASTEQUE LTD - Analysis Report

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.