STOCHASTIC INSTRUMENTS LTD

Executive Summary

Stochastic Instruments Ltd presents a sound financial position with positive working capital and stable net assets, supporting its ability to service credit facilities. The company operates in a niche manufacturing sector with low overheads and consistent management. Continued monitoring of liquidity and operational cash flows is recommended to maintain creditworthiness.

STOCHASTIC INSTRUMENTS LTD - Analysis Report

Company Number: 13111638

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: APPROVE
   Stochastic Instruments Ltd demonstrates a stable financial position with positive net current assets and net assets around £44,500 as of the latest accounts. The company is micro-sized, active, with no overdue filings or signs of financial distress. Directors have maintained consistent control and there is no indication of adverse events such as insolvency or director disqualification. The company should be able to service modest credit facilities, assuming its cash flows remain consistent.

2. Financial Strength:
   The balance sheet shows net current assets of £44,534 at 31 December 2023, slightly down from £45,911 in 2022 but still positive and healthy for a micro-entity. Total net assets equal the net current assets as there are no fixed assets reported. Shareholders’ funds are stable and represent retained earnings or reserves. The company’s low share capital (£2.00) is typical for small private limited companies and does not impact creditworthiness materially. The consistent net asset base over the last two years indicates financial stability, though the decline in current assets from £131,619 to £93,963 merits some attention.

3. Cash Flow Assessment:
   Current liabilities at £49,429 are adequately covered by current assets of £93,963, providing a current ratio near 1.9 times, indicating good short-term liquidity. The company’s working capital position is positive, suggesting it can meet short-term obligations without difficulty. Employee count is low (2), limiting fixed overheads and enhancing operational flexibility. However, the drop in current assets year-on-year suggests monitoring of receivables or inventory levels is advisable to ensure cash inflows remain robust.

4. Monitoring Points:

• Track cash and receivables levels for signs of collection delays or inventory build-up.
• Monitor current liabilities trends to avoid sudden increases that could strain liquidity.
• Review profitability and cash flow statements when available to assess operational performance beyond balance sheet strength.
• Maintain oversight of director activity and any changes in ownership/control that may affect governance or credit risk.
• Given the micro-entity status, ensure timely filing of accounts and confirmation statements to avoid compliance issues.