SOLUTION DELIVERY LTD

Executive Summary

Solution Delivery Ltd is a newly formed micro IT consultancy with a sound initial balance sheet and positive working capital. The company demonstrates compliance discipline and prudent financial management to date but remains unproven in generating sustainable cash flow. Credit approval is recommended with ongoing monitoring of financial performance, cash flows, and operational stability as the business matures.

SOLUTION DELIVERY LTD - Analysis Report

Company Number: 15398921

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: APPROVE with caution. Solution Delivery Ltd is a newly incorporated micro-entity with a relatively strong net asset position and positive working capital within its first financial period. The company shows no overdue filings, indicating good compliance and governance. However, as a start-up with limited operating history and only one employee, the repayment capacity relies heavily on the future business performance and cash flow generation. The directors appear experienced in IT professional services, but ongoing monitoring is advisable until a more established financial track record develops.

2. Financial Strength: The balance sheet as of 31 January 2025 shows total fixed assets of £835 and current assets of £75,079 against current liabilities of £40,471, yielding net current assets of £34,608. After accounting for accruals and deferred income of £20,000, net assets stand at £15,443, all attributable to shareholders' funds. This modest equity base is typical for a micro company in its first year, reflecting limited capitalization. The company’s capital structure is simple and without long-term debt, which reduces financial risk but also limits leverage.

3. Cash Flow Assessment: Current assets mainly comprise cash and short-term receivables, supporting a net working capital surplus of £34,608. There are no indications of liquidity stress or overdue liabilities. The accruals and deferred income of £20,000 suggest some prepayments or customer deposits, which is common in consultancy businesses. With only one employee and presumably low fixed costs, operational cash burn should be manageable. However, as the company is in its infancy, cash flow volatility is a risk, and close attention should be paid to receivables collection and client contract stability.

4. Monitoring Points:

• Future turnover and profit trends to assess business growth trajectory.
• Timely payment of trade creditors and avoidance of overdue liabilities.
• Cash flow statements to monitor liquidity and operational cash generation.
• Any changes in ownership or management that could affect control or strategy.
• Compliance with filing deadlines in subsequent years.
• Expansion of asset base and equity to strengthen financial resilience.