Company Number: 14761164

Analysis Date: 2025-07-20 12:22 UTC

1. Credit Opinion: APPROVE with caution. Solve Able Ltd is a newly incorporated micro-entity (incorporated March 2023) engaged in IT consultancy and information technology services. The company shows a positive net asset position and modest positive working capital in its first reported financial year. Given the micro-entity size and limited trading history, the credit risk is moderate but acceptable for a small facility. The controlling ownership and directorship by a single experienced director (Susan Rhodes) provide stable governance. However, limited trading track record and low asset base require close monitoring.

2. Financial Strength: The balance sheet at 31 March 2024 shows fixed assets of £479 and current assets of £74,106 against current liabilities of £70,742, resulting in net current assets of £3,364 and total net assets of £3,843. The company has modest equity, fully funded by shareholders' funds. The positive net assets indicate solvency, but the thin margin between current assets and liabilities suggests limited buffer. The company operates with a small workforce of 3 employees. Overall, financial strength is fragile but not weak given the startup stage.

3. Cash Flow Assessment: Current assets are primarily working capital components including cash and receivables. The company maintains a slight working capital surplus of £3,364, indicating it can cover short-term liabilities but with limited headroom. As a micro-entity, detailed cash flow statements are not available, but liquidity appears adequate for current operations. The relatively tight working capital necessitates prudent cash management to avoid liquidity strain, especially as business scales.

4. Monitoring Points:

• Track growth in turnover and profitability in subsequent accounts to confirm business viability.
• Monitor changes in working capital and liquidity position, ensuring current liabilities remain covered.
• Watch for timely filings and any increase in debt levels or overdraft usage.
• Review director and shareholder stability, ensuring no adverse governance changes.
• Assess impact of market conditions on IT consultancy demand and client payment patterns.