SAP PROJECT SOLUTIONS LTD

Executive Summary

SAP Project Solutions Ltd is a start-up micro-entity with a positive initial financial position and sufficient liquidity but limited trading history. Conditional credit approval is recommended, subject to ongoing monitoring of cash flow, profitability, and compliance. The company demonstrates cautious financial stewardship but requires more operational data to support larger credit commitments.

SAP PROJECT SOLUTIONS LTD - Analysis Report

Company Number: 15120106

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SAP Project Solutions Ltd is a newly incorporated company (since September 2023) with a clean status and no adverse director records. The filed accounts for the first financial year (ending September 2024) show a modest but positive net asset position (£23,469) and positive working capital. However, limited operating history and minimal financial scale restrict full credit approval at this stage. Lending or credit facilities may be considered with conditions such as regular financial monitoring, possibly restricted facility amounts, and covenant requirements until further trading history and profitability evidence is available.

2. Financial Strength:
   The balance sheet shows a small but positive net asset base (£23,469), consisting primarily of cash (£32,365) less current liabilities (£8,896), which include a corporation tax creditor (£8,296) and accrued expenses. The company’s equity is almost entirely retained earnings, indicating some initial profitability or capital injection, but the called-up share capital is minimal (£100). The company is classified as a micro-entity, compliant with small company reporting standards, and has no long-term liabilities, suggesting a low gearing risk. Overall, the financial position is sound but very limited in scale.

3. Cash Flow Assessment:
   Cash at bank of £32,365 against short-term liabilities of £8,896 yields a healthy liquidity ratio and positive net current assets of £23,469. This indicates the company currently holds sufficient liquidity to meet immediate obligations. However, the presence of a sizeable corporation tax creditor suggests recent profits have been generated but tax payments are outstanding, which should be monitored for timely settlement. Working capital management appears adequate, but given the infancy of operations and a single employee, cash flow projections should be reviewed regularly before extending significant credit.

4. Monitoring Points:

• Future turnover and profitability trends to confirm sustainable earnings generation.
• Timely settlement of corporation tax and other liabilities to avoid enforcement risk.
• Cash flow stability, especially if credit facilities are granted, to ensure ongoing liquidity.
• Director’s compliance with filing deadlines and prompt submission of subsequent accounts and confirmation statements.
• Any changes in ownership or control that might impact governance or credit risk.