SIMPLE SOLUTION AK LIMITED

Executive Summary

SIMPLE SOLUTION AK LIMITED is an early-stage private company with a small asset base and no liabilities, currently operating with minimal scale and cash reserves. While its balance sheet shows positive net assets, the lack of trading history and cash liquidity introduces uncertainty regarding its capacity to service credit facilities reliably. Conditional approval is recommended pending further financial performance updates and assurances on cash flow management.

SIMPLE SOLUTION AK LIMITED - Analysis Report

Company Number: 15163237

Analysis Date: 2025-07-20 18:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SIMPLE SOLUTION AK LIMITED is a newly incorporated private limited company (since September 2023) with limited financial history. The company shows a modest asset base of £39.7k, primarily in stock and minimal fixed assets, with no reported liabilities. While it currently has positive net assets and shareholders’ funds, the lack of trading profits, minimal operational scale (one employee/director), and early stage of business development present uncertainty regarding its ability to generate sustainable cash flow to service debt obligations. Approval is conditional on obtaining updated trading performance and cash flow forecasts, plus confirmation of collateral or personal guarantees given the limited financial track record.

2. Financial Strength:
   The balance sheet as of 30/09/2024 reports total assets of £39,700, comprising £39,000 stock and £700 tangible fixed assets. There are no current or long-term liabilities reported, resulting in net assets and shareholders’ funds of £39,700. The company is small with no retained earnings and appears to be in the start-up phase with capital mainly invested in stock. The absence of liabilities indicates no current financial leverage, but also limited scale and financial depth. The capital structure is straightforward, fully equity funded.

3. Cash Flow Assessment:
   Current assets consist solely of stock valued at £39,000, with no cash or receivables disclosed, suggesting limited immediate liquidity. Net current assets equal current assets, indicating no short-term liabilities. However, the lack of cash or debtor balances raises concern about working capital liquidity and the company’s ability to meet short-term cash requirements without additional financing. The absence of trading results and profit/loss data further limits assessment of operational cash generation. Monitoring cash inflows and outflows closely will be critical.

4. Monitoring Points:

• Monthly cash flow and working capital position to ensure liquidity coverage
• Trading performance and revenue growth to validate business model viability
• Timely filing of next annual accounts and confirmation statements to maintain compliance
• Any new borrowings or credit facilities and related repayment terms
• Changes in stock levels and turnover rates to assess inventory management efficiency
• Director’s ongoing involvement and any additional management hires or changes