Company Number: 14489918

Analysis Date: 2025-07-29 13:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Remote IT Rescue Ltd is an early-stage private limited company incorporated in late 2022, operating in IT consultancy (SIC 62020). The financials for the first reporting year show minimal net assets (£560) and very tight working capital (£339). Current liabilities (£12,993) nearly match current assets (£13,332), with a significant corporation tax creditor (£12,158) recorded. The company’s ability to service debt or absorb financial shocks is limited given its small scale and lack of retained earnings. However, no overdue filings or adverse director issues are noted, and the principal shareholder/director owns 75-100% equity, indicating control alignment. Approval can be considered if credit facilities are modest, secured, or with clear cash flow plans. Close monitoring of tax payments and working capital is essential.

2. Financial Strength:
   The balance sheet reflects a nascent business with very limited fixed assets (£221) and a small positive net asset base (£560). Shareholders’ funds consist almost entirely of initial share capital (£100) and modest profit and loss reserves (£460), indicating little accumulated profitability to date. The company’s current liabilities are dominated by a corporation tax creditor of £12,158, which is a significant liability relative to its asset base. This suggests either a tax payment timing issue or a build-up of unpaid tax liabilities that need addressing. Overall, the financial strength is weak due to the very low equity base and near breakeven working capital position.

3. Cash Flow Assessment:
   Cash on hand is minimal (£1,149), and trade debtors are low (£43), with the majority of debtors being corporation tax recoverable and other debtors. The net current assets position is positive but marginal (£339), indicating limited liquidity buffer. The high corporation tax creditor poses a risk to liquidity if amounts become due imminently without sufficient cash inflows. Working capital management and timely tax settlement will be critical to avoid cash flow distress. The company currently employs only 2 people, which suggests limited fixed overheads, potentially easing cash flow pressure.

4. Monitoring Points:

• Timely settlement of corporation tax liabilities and prevention of creditor build-up.
• Cash flow trends over the next 12 months, particularly receivables and payables cycles.
• Growth in turnover and profitability to build retained earnings and strengthen equity.
• Any additional borrowing or credit facilities and their impact on liquidity.
• Director and shareholder involvement to ensure ongoing financial oversight and strategic direction.