SP SYSNET LIMITED

Executive Summary

SP Sysnet Limited is a newly incorporated micro-entity with a modest balance sheet and positive net current assets, reflecting initial financial stability but limited capital resources. The company’s ability to service credit facilities is unproven due to lack of profitability and cash flow data. Conditional credit approval is recommended subject to ongoing monitoring of financial performance and liquidity improvements.

SP SYSNET LIMITED - Analysis Report

Company Number: 14304924

Analysis Date: 2025-07-29 17:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SP Sysnet Limited is a micro-entity incorporated in 2022 with a very limited operating history and minimal financial data. The company has positive net current assets (£2,523) and no overdue filings, indicating basic compliance and some financial stability. However, the minimal asset base and lack of profit/loss data limit visibility on debt servicing capacity and cash flow generation. Credit approval is conditional on monitoring future trading performance and receipt of updated financials demonstrating improved liquidity and profitability.

2. Financial Strength:
   The balance sheet as of 31 August 2023 shows current assets of £5,760 against current liabilities of £3,237, resulting in net current assets of £2,523. There are no fixed assets reported, and shareholders' funds equal net assets at £2,523. This indicates a very small capital base with limited financial buffer. The company’s micro status and single employee suggest a start-up phase with constrained resources. No evidence of retained earnings or reserves exists, pointing to an early stage without accumulated profitability.

3. Cash Flow Assessment:
   With current assets primarily consisting of cash or receivables and current liabilities under £3,500, liquidity appears sufficient for immediate obligations. However, the absolute values are low, implying tight working capital management is necessary. The absence of cash flow statements and profit/loss details restricts assessment of operational cash generation or potential dependency on external funding. The company’s trade cycle and payment terms should be closely reviewed to ensure ongoing solvency.

4. Monitoring Points:

• Future trading results and profitability trends in subsequent accounts.
• Cash flow statements to verify operational liquidity and debt service capacity.
• Any increase in current liabilities or overdue payments that could signal cash flow stress.
• Director and management changes, as well as compliance with filing deadlines.
• Market conditions in the IT repair and consultancy sector affecting revenue stability.