PORTAL SOLVE LTD

Executive Summary

Portal Solve Ltd is a small but financially improving IT consultancy with positive net assets and liquidity sufficient to cover short-term obligations. The company’s credit profile is cautiously positive, supported by strong shareholder equity growth and improving working capital. Given its micro size and sole director control, credit approval should be conditional on ongoing monitoring of cash flow and financial performance.

PORTAL SOLVE LTD - Analysis Report

Company Number: 13935826

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Portal Solve Ltd demonstrates modest but improving financial stability as a micro-entity operating in IT consultancy. The company shows positive net assets and a growing shareholders’ fund, indicating strengthening equity. However, its scale is small and current liabilities remain notable relative to assets, which suggests some working capital constraints. The director’s sole control and recent incorporation increase risk, so credit facilities should be cautiously structured with covenants and regular monitoring.

2. Financial Strength:
   The balance sheet as of 29 Feb 2024 reports fixed assets of £2,000 and current assets of £35,070 against current liabilities of £11,577, yielding net current assets of approximately £23,493. Shareholders’ funds improved significantly from £7,245 in 2022 to £25,493 in 2024, reflecting retained earnings or capital injection. The decline in fixed assets and current assets compared to prior year suggests some asset disposals or reduced cash balances, but overall net assets remain positive and growing.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and receivables, although specific cash breakdown is unavailable. The working capital position is positive (£23.5k), sufficient to cover short-term liabilities, indicating adequate liquidity to meet operational expenses and service credit lines currently. However, the prior year’s very high current liabilities (£47k) reduced substantially, which may reflect improved creditor management or settlement of payables. Close attention to cash conversion cycles and debtor collections is advised.

4. Monitoring Points:

• Track turnover growth beyond the reported £49,697 in 2023 to ensure sustainable revenue increase.
• Monitor current liabilities for any upward trend that might pressure liquidity.
• Observe any changes in director control or addition of financial oversight personnel.
• Review timely filing of accounts and confirmation statements to avoid regulatory risk.
• Watch for any material fluctuations in working capital and cash balances quarterly.