STRINGENT SUPPORT SERVICES LTD

Executive Summary

STRINGENT SUPPORT SERVICES LTD is a newly incorporated micro-entity exhibiting a weak financial position with negative net assets and limited liquidity. The company’s indebtedness substantially exceeds its asset base, raising significant credit risk concerns. Without demonstrable cash flow improvements or stronger balances, credit facilities should be declined or provided only under stringent conditions with close monitoring.

STRINGENT SUPPORT SERVICES LTD - Analysis Report

Company Number: 15472627

Analysis Date: 2025-07-20 11:24 UTC

1. Credit Opinion: DECLINE
   STRINGENT SUPPORT SERVICES LTD presents significant credit risk at this early stage. The company shows negative net assets (£-25,223) due to a £30,000 creditor balance classified as amounts falling due after more than one year, indicating long-term indebtedness exceeding total assets. With only £4,777 in current assets and no fixed assets, the company’s financial base is weak. The negative equity position and limited operational history (incorporated Feb 2024) suggest an unproven ability to generate sustainable cash flows. The resignation of one director shortly before year-end may also hint at governance or operational concerns. Overall, the company currently lacks the financial strength or track record to support credit extension without stringent conditions.

2. Financial Strength:
   The balance sheet reveals a micro-entity with minimal tangible assets and limited working capital resources. Current assets of £4,777 are insufficient to cover the substantial non-current liabilities of £30,000, resulting in a negative net asset position of £25,223. Shareholders’ funds mirror this deficit, confirming that liabilities exceed assets. The absence of fixed assets suggests no capital investment to support operations. This fragile financial structure raises concerns about solvency and the company’s ability to withstand economic stress or unexpected cash demands.

3. Cash Flow Assessment:
   Limited data is available on cash flows, but the balance sheet indicates constrained liquidity. The current assets figure likely includes cash and receivables but is dwarfed by the long-term creditor amount. The negative net asset position implies that working capital is insufficient to meet obligations as they arise. No retained earnings or P&L reserves are reported, consistent with a start-up phase and possible initial losses. The company also employs only two staff on average, which may reduce fixed overheads but also limits operational capacity. Without positive cash flow generation evidence, liquidity risk remains high.

4. Monitoring Points:

• Track subsequent annual accounts for signs of asset growth, profit generation, and reduction in creditor balances.
• Monitor cash flow statements and bank statements, if available, to assess ongoing liquidity and operational cash generation.
• Observe director and management changes for stability and governance quality.
• Review any upcoming credit applications or changes in debt structure that might impact financial flexibility.
• Evaluate the company’s performance within its SIC code 87200 sector for market risks and operational viability.