PRAXI SOLUTIONS LIMITED

Executive Summary

Praxi Solutions Limited is a very small, early-stage IT consultancy with a stable but minimal net asset base and positive working capital. The company’s financial position supports modest short-term credit but lacks substantial tangible assets or diversified management. Credit approval should be conditional on close monitoring of liquidity, timely filings, and business performance to mitigate risk typical of micro entities at this stage.

PRAXI SOLUTIONS LIMITED - Analysis Report

Company Number: 13644822

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Praxi Solutions Limited is a micro private limited company active since 2021, operating in IT consultancy. The company shows modest but stable net assets around £5,500-£5,600 with a small positive working capital. However, the absence of fixed assets and the scale of current assets suggest a very lean operation with limited tangible collateral. The company’s financials are unaudited micro-entity filings, which provide limited insight into profitability and cash generation. The single director and shareholder, residing abroad, is experienced in management consultancy, indicating competent oversight. Given the company’s small size, limited asset base, and early stage of operation, credit is recommended with conditions: any credit facility should be modest, short-term, and closely monitored for liquidity and payment performance.

2. Financial Strength:
   Praxi Solutions shows a small but positive net asset position (£5,599 as of 30/09/2024) with no fixed assets, indicating all value is in current assets less liabilities. Current assets decreased slightly from £8,105 to £7,101, while current liabilities reduced from £1,249 to £422, resulting in a stable net current asset position (~£6,600). The shareholder funds remain stable. The balance sheet is very small, typical of a micro entity, and lacks significant long-term assets or reserves. There is no evidence of debt or significant liabilities beyond short-term creditors and accruals.

3. Cash Flow Assessment:
   Current assets primarily include cash and receivables, though exact composition is not detailed. The net current assets (~£6,600) provide a modest liquidity buffer relative to current liabilities (£422), indicating the company can meet short-term obligations. The reduction in current liabilities suggests some improved creditor management or payment. However, the small scale means cash flow volatility could impact liquidity quickly. With only one employee and no audit, there is limited visibility on operating cash flow or profitability trends.

4. Monitoring Points:

• Cash flow and working capital trends in subsequent filings to ensure ongoing ability to meet short-term obligations.
• Any changes in director or ownership structure, especially given director’s overseas residence.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Business development and revenue growth indicators to assess trajectory beyond static balance sheet figures.
• Potential introduction of debt or guarantees which may impact leverage and credit risk.