TALENTPREDIX LTD

Executive Summary

TalentPredix Ltd has demonstrated improving financial health with positive net assets and working capital as of June 2024, though liquidity remains tight. The company’s reliance on related party balances and modest cash reserves necessitates ongoing monitoring of cash flow and creditor management. Conditional credit approval is recommended with emphasis on close scrutiny of liquidity and debtor collections to mitigate repayment risk.

TALENTPREDIX LTD - Analysis Report

Company Number: 13260764

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

1. Credit Opinion: CONDITIONAL APPROVAL TalentPredix Ltd shows a positive progression in its financial position over recent years, moving from a negative net current asset position in 2021 to a modest positive net current asset position in 2024. The company maintains active status with timely filing of accounts and confirmation statements, suggesting adequate compliance and governance. However, the relatively low cash balance (£33,407) and current liabilities (£120,210) indicate a tight liquidity position. The significant trade and other creditors, particularly amounts owed to a connected party (£81,731), may pose a risk if not managed prudently. Credit approval is recommended with conditions requiring close monitoring of liquidity and creditor management, and possibly assurances on the repayment terms of related party balances.

2. Financial Strength: The balance sheet shows improvement with net assets increasing from £-18,090 in 2021 to £48,119 in 2024, driven by a reduction of negative working capital and accumulation of profit and loss reserves (£48,019). The company holds intangible assets (software) valued at £42,413, which represent a substantial portion of total assets but are amortising annually. Share capital is nominal at £100, indicating limited equity buffer. The company has no long-term borrowings reported, reducing leverage risk. Overall, the financial strength is moderate, with equity improving but still relatively small in absolute terms.

3. Cash Flow Assessment: Cash at bank of £33,407 against current liabilities of £120,210 signifies limited immediate liquidity, though net current assets are slightly positive at £5,706, indicating working capital is just sufficient to cover short-term obligations. Debtors (£92,509) form a large part of current assets but may present collection risk depending on their aging. The company should maintain rigorous credit control to ensure timely debtor conversion to cash. The presence of sizeable amounts owed to related parties (£81,731) requires scrutiny to confirm these are not creating hidden liquidity dependencies.

4. Monitoring Points:

• Monitor cash flow closely, ensuring liquidity remains sufficient to meet short-term liabilities.
• Review aging of trade debtors regularly to avoid bad debts impacting working capital.
• Watch related party balances for any changes that could affect financial stability.
• Track profit and loss reserves to confirm ongoing profitability and financial sustainability.
• Observe any changes in directors or corporate structure that might influence governance and credit risk.