SYNERGISE RECRUITMENT SOLUTIONS LTD

Executive Summary

Synergise Recruitment Solutions Ltd shows a sound start with positive net assets and working capital, suitable for initial credit approval. However, due to its short trading history, modest equity, and significant debtor concentration, ongoing monitoring of cash flow and tax liabilities is essential to mitigate risk. Conditional approval with periodic review is recommended to ensure financial stability.

SYNERGISE RECRUITMENT SOLUTIONS LTD - Analysis Report

Company Number: 14848337

Analysis Date: 2025-07-29 16:51 UTC

1. Credit Opinion: APPROVE with conditions
   Synergise Recruitment Solutions Ltd is a newly incorporated private limited company operating in the temporary employment agency sector. The company demonstrates initial positive net assets and working capital, indicating an ability to meet short-term obligations. However, given its short trading history of just over one year and limited financial data, credit approval should be conditional on regular monitoring of cash flow and receivables collection to ensure ongoing liquidity and operational stability.

2. Financial Strength:
   The balance sheet as of 31 May 2024 shows net assets of £7,960, reflecting modest capitalisation. Fixed assets are negligible (£612) and primarily computer equipment. The company holds net current assets of £7,348, with current assets (£24,473) mainly made up of trade debtors (£20,163) and cash (£1,811). Current liabilities (£17,125) include a significant taxation and social security balance of £12,000, which should be closely managed. Shareholders' funds are £7,959, comprising mainly retained profits since incorporation. The small equity base and high debtor concentration suggest financial strength is still fragile.

3. Cash Flow Assessment:
   Cash at bank is low at £1,811 relative to current liabilities, indicating limited cash buffer. The large debtor balance (£22,662) creates dependency on timely collections to maintain liquidity. The company’s current ratio (~1.43) is adequate but could be strained if debtor payments are delayed. Working capital is positive but modest. The tax and social security creditor of £12,000 is notable and should be settled promptly to avoid penalties. Overall, cash flow management will be crucial, especially given the company's early stage and sector volatility.

4. Monitoring Points:

• Receivables aging and debtor collection efficiency, to prevent liquidity issues.
• Timely settlement of taxation and social security liabilities.
• Profitability trends in future accounts to assess earning sustainability.
• Cash flow statements once available to evaluate operational cash generation.
• Any changes in the director's credit exposure or shareholder funding injections.