Company Number: 12583146

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GoodFit Limited demonstrates improving financial health with growing net current assets and shareholders' funds over recent years. However, its micro entity size and relatively modest capital base limit its resilience to significant financial stress. The company’s ability to expand staff from 2 to 6 employees indicates growth, but the lack of audited financials and limited disclosure on profit and loss reduces transparency. Conditional approval is recommended, subject to ongoing monitoring of cash flow consistency and further financial disclosures to confirm stable debt servicing capacity.

2. Financial Strength:
   The balance sheet shows a steady increase in net current assets from £14,623 in 2023 to £48,924 in 2024, and shareholders’ funds nearly tripled from £17,578 to £50,618. Fixed assets are minimal (£1,694) indicating limited capital investment, typical for an IT consultancy micro business. Current liabilities rose to £445,671 against current assets of £494,595, providing a modest working capital buffer. The equity position is positive and improving, which supports financial stability. Overall, the balance sheet is healthy for its category but remains vulnerable to cash flow shocks.

3. Cash Flow Assessment:
   The company’s current assets mainly consist of cash and receivables sufficient to cover current liabilities, yielding net current assets of nearly £49k. The increase in liabilities alongside assets suggests growing operations but also increased short-term obligations. With 6 employees, payroll demands have increased, impacting cash requirements. Absence of detailed profit and loss or cash flow statements requires caution; however, the positive working capital and rising equity indicate adequate liquidity at present.

4. Monitoring Points:

• Monitor actual cash flow statements once available to ensure operational cash generation meets liabilities.
• Track debtor days and creditor balances to assess working capital efficiency.
• Watch for any overdue filings or changes in director roles that might impact governance.
• Review future financial statements for profit trends and capital expenditure to confirm sustainable growth.
• Maintain vigilance on market conditions affecting IT consultancy demand, as sector is sensitive to economic cycles.