QUARK SOLUTION LTD

Executive Summary

Quark Solution Ltd presents a robust financial profile with increasing net assets and strong liquidity, supported by a well-managed balance sheet. The company’s ability to cover current liabilities with cash and maintain positive working capital underscores its capacity to meet debt obligations. Given its financial trajectory and stable management, credit approval is recommended with routine monitoring of cash flow and director-related balances.

QUARK SOLUTION LTD - Analysis Report

Company Number: 13120748

Analysis Date: 2025-07-19 12:04 UTC

1. Credit Opinion: APPROVE
   Quark Solution Ltd demonstrates a sound financial position with steadily improving net assets and positive working capital. The company holds strong cash balances in excess of current liabilities, indicating good liquidity and the ability to meet short-term obligations. The director holds full control and appears committed, with no adverse governance flags. While the company is relatively young (incorporated 2021), the upward trend in financial strength and maintained compliance with filing requirements support credit approval.

2. Financial Strength:
   The company’s net assets have increased from £13,653 in 2022 to £86,914 in 2025, indicating solid balance sheet improvement. Tangible fixed assets are modest but showing investment growth (£23,889 net book value in 2025). Shareholders’ funds have grown in line with retained earnings, suggesting profitable operations or capital injections. There is no long-term debt disclosed, reducing financial risk. Overall, the balance sheet reflects a low-leverage, asset-backed position.

3. Cash Flow Assessment:
   Cash at bank is substantial (£134,459 in 2025), comfortably covering current liabilities of £71,434, resulting in net current assets of £63,025. This strong liquidity buffer suggests the company can service short-term debts and operational expenses without difficulty. Debtors are minimal or zero, reducing concerns about collections risk. The working capital position has improved significantly over recent years, evidencing effective cash and receivables management.

4. Monitoring Points:

• Monitor ongoing profitability and cash flow generation to ensure continued balance sheet growth.
• Watch for any increases in director’s current account balances, which could represent informal loans or drawings impacting liquidity.
• Track maintenance of up-to-date filings and compliance to avoid regulatory penalties.
• Keep an eye on fixed asset additions and depreciation to assess capital expenditure and asset utilization.