SCITYPE COMMUNICATIONS LTD

Executive Summary

SCITYPE COMMUNICATIONS LTD demonstrates solid balance sheet health with increasing equity and strong liquidity, supported by low liabilities and prudent financial management. The company’s micro-entity status and stable control structure support its capacity to meet credit obligations on an ongoing basis. Continued monitoring of liquidity and operational performance will ensure early detection of any emerging risks.

SCITYPE COMMUNICATIONS LTD - Analysis Report

Company Number: 13556394

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: APPROVE
   SCITYPE COMMUNICATIONS LTD presents a stable financial position with net assets growing from £19,831 in 2021 to £39,301 in 2024, reflecting positive equity accumulation. The company operates as a micro-entity with consistent current assets significantly exceeding current liabilities, indicating a strong ability to meet short-term obligations. The single director and sole shareholder demonstrates clear control but no red flags on governance or conduct. There is no indication of financial distress or overdue filings. Given these factors, the company appears capable of servicing credit facilities on reasonable terms.

2. Financial Strength:
   The balance sheet shows a modest fixed asset base (£758) typical for a micro-entity in public relations, with total net assets of £39,301 as of August 2024. The company’s equity has nearly doubled over three years, supported by consistent net current assets (£38,793) that comfortably cover short-term liabilities (£964). The low level of liabilities and strong shareholders’ funds reflect a conservative capital structure and good financial health for its size.

3. Cash Flow Assessment:
   Current assets of approximately £39,757 mainly comprise cash and receivables, with current liabilities under £1,000, leading to a strong net working capital position. This liquidity profile suggests the company can easily cover its immediate financial commitments and maintain smooth operational cash flows. The presence of only one employee and minimal fixed assets further reduces cash burn risks.

4. Monitoring Points:

• Maintain oversight of liquidity trends to ensure current assets remain sufficient relative to any growth in liabilities.
• Monitor changes in director or ownership structure as the company is closely held.
• Track revenue and profitability trends once profit and loss accounts become available since only balance sheet data is currently provided.
• Watch for any increase in liabilities or overdue filings indicating operational or financial stress.