QUALISELL TECH LTD

Executive Summary

Qualisell Tech Ltd is a micro private company showing modest financial recovery with positive net assets and a small profit in its latest accounts. However, liquidity is tight and turnover has decreased slightly, posing caution for credit extension. Conditional approval is recommended with prudent limits and ongoing monitoring of working capital and profitability.

QUALISELL TECH LTD - Analysis Report

Company Number: 13157241

Analysis Date: 2025-07-20 17:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Qualisell Tech Ltd is an active micro private limited company with a short operating history since 2021. The company shows positive net assets and a small profit in the latest year, reversing previous losses, which indicates some improvement in financial performance. However, turnover has declined slightly from £437k in 2023 to £392k in 2024, and net current assets have shrunk significantly from £36.8k to £0.36k, reflecting tight liquidity. The company remains lightly capitalized with equity of only £358. Given these facts, the company demonstrates limited but improving ability to service debts, warranting credit approval with caution. It is advisable to impose credit limits and monitor cash flow closely.

2. Financial Strength:
   The balance sheet is weak but recovering. Net assets have moved from a negative £2,190 in 2023 to a positive £358 in 2024 owing to improved profitability. Current assets have fallen substantially from £36,773 to £11,353, and current liabilities remain high at £19,888, resulting in almost breakeven net current assets of £358. The company holds no fixed assets, relying mainly on current asset turnover. The low equity base and small retained profits highlight vulnerability to adverse events or increased borrowing. Overall, financial strength is limited but stable enough to consider small credit facilities.

3. Cash Flow Assessment:
   Working capital is tight with current liabilities exceeding current assets in absolute terms but closely balanced due to prepayments. The company’s small positive profit (£357) after previous losses suggests some operational improvement but at a very modest scale. The absence of employees implies low overheads but also limited resource base. Liquidity risk exists given the narrow margin between current assets and liabilities. The company likely depends on timely collections and supplier payment terms to maintain cash flow. Careful scrutiny of cash conversion cycles and credit terms is recommended.

4. Monitoring Points:

• Turnover trends: watch for continued decline or stagnation in sales revenue.
• Liquidity ratios: current ratio and quick ratio to ensure working capital remains positive.
• Profitability: maintain or improve net profit margins to build reserves.
• Management of payables and receivables: ensure no build-up of overdue creditors or poor debtor collections.
• Capital adequacy: consider need for equity injection or additional financing to strengthen balance sheet.