SKILLSAVE LTD

Executive Summary

Skillsave Ltd is a very small, micro-entity company with limited financial resources and a weakening balance sheet position. It demonstrates constrained liquidity and low capitalization, warranting cautious credit exposure. Conditional approval is recommended with strict monitoring of working capital and cash flow metrics to mitigate risk.

SKILLSAVE LTD - Analysis Report

Company Number: 13493609

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Skillsave Ltd is a micro-entity active in landscape services with minimal fixed assets and modest working capital. The company shows very limited financial scale, with net assets of only £104 at the 2024 year-end, down from £458 in 2023. This decline in net assets and current asset base suggests constrained liquidity and limited buffer to absorb shocks. The company has one director with full control, which simplifies governance but also concentrates risk. Given the micro scale and low capitalization, credit should be extended cautiously and primarily for small, short-term facilities. Approval is conditional on close monitoring of cash flow and receivables, with limits on exposure.

2. Financial Strength:
   The balance sheet shows no fixed assets and a very modest current asset base (£936 in 2024, up from £565 in 2023). Current liabilities increased significantly from £107 in 2023 to £832 in 2024, eroding net current assets from £458 to £104. This indicates tightening liquidity and increased short-term obligations. Shareholders’ funds mirror net assets and have dropped substantially, reflecting either losses or drawings. Overall, financial strength is weak due to low capitalization and rising liabilities relative to assets.

3. Cash Flow Assessment:
   The company’s current assets consist mostly of cash and receivables (exact breakdown not disclosed), which remain low. The increase in current liabilities suggests some pressure on working capital. The net current assets remain positive but minimal, indicating limited liquidity cushion to cover short-term debts. The average employee count has reduced from 2 to 1, possibly reflecting cost control measures. The company’s ability to generate consistent positive cash flow is uncertain and should be verified before extending credit.

4. Monitoring Points:

• Track net current assets and liquidity ratios to detect further erosion of working capital.
• Monitor accounts payable and receivable aging to assess cash conversion cycles.
• Watch for any increase in liabilities or delayed payments that could strain cash flow.
• Review director’s drawings and shareholder transactions to understand equity depletion.
• Assess any changes in business scale or employee numbers that may impact operational capacity.