SACH TECHNOLOGY LIMITED

Executive Summary

Sach Technology Limited is a micro-entity in early development with minimal financial scale and a tight working capital position. While current financials show a positive net asset base, the sharp increase in current liabilities relative to assets presents liquidity risks. Credit approval is recommended on a conditional basis with ongoing monitoring of cash flow and liabilities to ensure the company maintains operational resilience.

SACH TECHNOLOGY LIMITED - Analysis Report

Company Number: 14183774

Analysis Date: 2025-07-29 18:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sach Technology Limited is a recently incorporated micro-entity (since 2022) operating in IT consultancy. The company shows a positive net asset position, albeit very modest (£134 as of 2024). Current liabilities have increased significantly in the latest year, nearly matching current assets, squeezing working capital. There is no history of losses reported, but the financial scale is minimal and the business has no employees currently. Credit approval is possible but should be conditional on continued close monitoring of liquidity and cash flow, as the company’s financial base is thin and early-stage.

2. Financial Strength:
   The balance sheet reveals a very small net asset base (£134 in 2024, slightly increased from £118 in 2023). Current assets grew substantially from £3,995 to £41,957, but current liabilities also jumped from £2,707 to £41,823, leaving net current assets at a marginal £134. The company holds no fixed assets. The shareholder funds correspond to net assets, indicating no outside borrowings or long-term liabilities reported. Overall financial strength is weak due to the micro scale and tight working capital position.

3. Cash Flow Assessment:
   Working capital is effectively neutral with current liabilities nearly equal to current assets, which may pressure short-term liquidity. The company reported no employees in 2024 (down from 2), which suggests limited payroll obligations and possibly low operating expenses. The lack of audit and limited financial disclosures restrict deeper cash flow analysis, but the data implies very limited operational scale and potentially constrained cash inflows. Careful attention should be paid to cash management and creditor payments.

4. Monitoring Points:

• Track changes in current liabilities and their composition (trade creditors, accruals) to avoid liquidity strain.
• Monitor turnover and cash receipts to confirm sustainable revenue inflow supporting working capital.
• Watch for any increase in borrowings or external financing which could impact solvency.
• Observe director conduct and any changes in ownership/control to assess management stability.
• Review subsequent accounts and confirmation statement filings for timely compliance.