Company Number: 14383916

Analysis Date: 2025-07-20 13:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Reliance Inspection Ltd is an active micro-entity incorporated recently (2022-09-28) and operates in engineering-related scientific and technical consulting. The company shows positive net assets and working capital but a notable decline in net current assets and net assets from £8,160 in 2023 to £2,978 in 2024. The limited financial history and shrinkage in asset base indicate some risk. Approval is conditional on continued monitoring of working capital and overall asset stability to ensure debt servicing capability.

2. Financial Strength:
   The company’s net assets have decreased significantly over the last financial year, from £8,160 to £2,978. Current assets dropped from £13,267 to £3,405, while current liabilities also decreased but remained negative (creditors of £427). The company shows positive net current assets (£2,978) indicating short-term obligations can be met. However, the decline in asset base and working capital suggests caution. The micro-entity status implies simple operations with no employees, minimizing overhead risk.

3. Cash Flow Assessment:
   Liquidity appears adequate with net current assets positive, but the sharp reduction in current assets year-over-year signals potential cash flow tightening. The absence of employees and modest liabilities reduce cash demands, but limited financial data restricts visibility on operating cash flows. Further information on receivables, payables, and cash generation is recommended to fully assess liquidity resilience.

4. Monitoring Points:

• Track quarterly or interim financial updates focusing on net current assets and liquidity.
• Monitor accounts receivable and payable aging to detect cash flow stress.
• Watch for any material changes in liabilities or asset impairments.
• Observe director actions and any changes in control or financial strategy.
• Review upcoming filings for trend confirmation and potential credit risk increase.