SEMICONDUCTOR TECHNOLOGY SOLUTIONS LTD.

Executive Summary

Semiconductor Technology Solutions Ltd. is a small but growing engineering consulting company with a healthy liquidity position and improving net assets. Cash reserves and working capital comfortably cover current liabilities, supported by director loans. While financial fundamentals support credit approval, continued monitoring of related-party loans and cash flow sustainability is recommended given the company’s young age and size.

SEMICONDUCTOR TECHNOLOGY SOLUTIONS LTD. - Analysis Report

Company Number: 13562855

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion:
   APPROVE with monitoring. Semiconductor Technology Solutions Ltd. demonstrates a solid liquidity position and positive net assets with improving financial metrics. The company’s ability to cover current liabilities with cash and other current assets is sound. However, as a relatively young entity with a small shareholder base and limited operating history, prudent monitoring is advised.

2. Financial Strength:
   The balance sheet shows net assets of £94,478 as of 31 August 2024, up from £55,923 the prior year, indicating growth in retained earnings and equity. Tangible fixed assets decreased slightly but remain modest at £25,017. Share capital is minimal (£150), typical for a small private company. Current liabilities stand at £95,968, primarily loans from directors (£40,293), taxes, and deferred income. The company’s equity base is stable, and no long-term debt is reported, reducing leverage risk.

3. Cash Flow Assessment:
   Cash and equivalents increased to £165,429 from £119,146 year-over-year, providing strong liquidity. Net current assets improved from £27,808 to £69,461, reflecting enhanced working capital management. The company benefits from director loans which bolster short-term funding, but these also represent related-party risk; it is important to confirm terms and repayment capabilities. Overall, liquidity and cash flow appear adequate to meet short-term obligations.

4. Monitoring Points:

• Track director loan balances and repayment schedules to mitigate concentration risk.
• Monitor ongoing cash generation and working capital trends for sustainability as the company grows.
• Observe any changes in deferred income which could impact revenue recognition and cash flows.
• Review future filings for any audit requirements or significant changes in accounting policies or financial position.
• Maintain oversight on customer concentration and receivables aging if data becomes available.