PURESINE LTD

Executive Summary

Puresine Ltd shows steady balance sheet improvement with growing net assets and positive working capital in the latest fiscal year. The company’s financial position and management stability support a low-to-moderate credit risk profile suitable for standard credit facilities. Ongoing monitoring of liquidity and operational performance is recommended to maintain creditworthiness.

PURESINE LTD - Analysis Report

Company Number: 12998839

Analysis Date: 2025-07-20 12:51 UTC

1. Credit Opinion: APPROVE
   Puresine Ltd demonstrates improving financial health with positive net current assets in the latest year and no overdue filings. The company has maintained steady operations and modest growth since incorporation in 2020. Directors are longstanding and appear stable, with no red flags in control or management. Given the micro-company size and sector (engineering consultancy), the risk profile is low to moderate, suitable for standard credit facilities.

2. Financial Strength:
   The company's net assets have increased from £20,574 in 2020 to £40,907 in 2023, reflecting retained earnings and asset growth. Fixed assets remain stable (around £35k), while current assets nearly doubled from £37,993 to £65,317 in 2023. Importantly, net current assets reversed from a deficit (£-2,166) in 2022 to a positive £5,565 in 2023, indicating improved liquidity. Shareholders’ funds have grown, supporting balance sheet resilience.

3. Cash Flow Assessment:
   The current ratio (current assets to current liabilities) improved to approximately 1.09 in 2023 (65,317/59,752), indicating marginal but positive short-term liquidity. The company has modest working capital but sufficient to meet short-term obligations. The absence of audit requirements and a small employee base (2 average employees) suggest limited cash flow complexity but also limited scale. Overall, liquidity is adequate but should be monitored.

4. Monitoring Points:

• Maintain positive net current assets and ensure current liabilities do not outpace current assets.
• Monitor turnover and profitability trends once available, as micro-entity accounts provide limited P&L detail.
• Watch for any director changes or control shifts that might affect governance.
• Review any expansion plans or capital expenditure that could impact cash flow or leverage.