Company Number: 14876215

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SPS DYNATECH LIMITED is a recently incorporated micro-entity with limited operating history and a single director/shareholder controlling 75-100% of shares and voting rights. The company has net assets of approximately £49k, but currently shows a slight working capital deficit (net current liabilities of £3,391). As a start-up with minimal financial history, credit risk is inherently higher, but the absence of overdue filings and a clean director record are positive. Approval for modest credit facilities could be considered, subject to ongoing monitoring and limits appropriate for a micro business in IT consultancy.

2. Financial Strength:
   The balance sheet shows fixed assets of £52,695, mainly likely to be equipment or software, and current assets of £34,769. Current liabilities exceed current assets by £3,391, indicating a tight liquidity position. However, net assets stand at £49,142, representing shareholder equity funded at incorporation or through profits. The company is small with one employee (the director), limiting overheads. Overall, financial strength is modest but stable given the short trading period.

3. Cash Flow Assessment:
   The negative net current assets indicate the company may have short-term cash flow constraints if liabilities mature before receivables or cash inflows. The micro entity status and minimal staff suggest low operating expenses. Nonetheless, working capital management is critical, and any credit extension should consider the company's ability to generate positive operating cash flow going forward. No audit was required, and no detailed cash flow statement is available, so liquidity risk remains a key consideration.

4. Monitoring Points:

• Timely filing of next accounts and confirmation statements to maintain compliance
• Evolution of net current assets and liquidity ratios to track working capital improvements
• Revenue growth and profitability trends as the company matures beyond start-up phase
• Any changes in director or ownership structure that could impact governance or control
• Credit utilisation versus repayment performance on any extended facilities