TECHNICAL & QUALITY ADVICE LTD

Executive Summary

Technical & Quality Advice Ltd shows a promising financial foundation with profitable operations, strong cash position, and positive net assets in its first year. The company is capable of meeting short-term obligations and servicing credit facilities, subject to monitoring of revenue growth and cash flow patterns. Conditional approval is recommended to support the business as it establishes its market presence.

TECHNICAL & QUALITY ADVICE LTD - Analysis Report

Company Number: 15028176

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: APPROVE
   Technical & Quality Advice Ltd demonstrates a strong initial financial position for a newly incorporated company. With positive operating profit and net assets significantly exceeding current liabilities, the company shows sound financial stewardship and ability to meet short-term obligations. Given its small scale and single director control, credit approval should be conditional on continued monitoring of revenue growth and cash flow stability.

2. Financial Strength:
   The balance sheet reveals net assets of £40,879 primarily supported by cash reserves of £57,945 against current liabilities of £17,066, reflecting solid working capital. The company has no long-term debt or fixed assets recorded, typical for a start-up in its first financial year. Shareholders’ funds equal net assets, indicating no external financing and a conservative capital structure. Profit before tax of £77,627 on turnover of £84,210 evidences operational profitability.

3. Cash Flow Assessment:
   Cash at bank is healthy relative to liabilities, providing a comfortable liquidity buffer. Positive operating cash flow inferred from profit figures and minimal administrative expenses (£6,583) supports the company’s ability to service debts and cover short-term expenses. Working capital is positive at approximately £40,879, indicating no immediate liquidity concerns.

4. Monitoring Points:

• Revenue growth trajectory: Current turnover is modest; sustained or accelerating growth is critical to support future credit needs.
• Profit margins and expense control: Administrative expenses should be monitored to ensure profitability is maintained as the business scales.
• Cash flow continuity: Watch for any significant changes in cash balances or liabilities that could affect liquidity.
• Director and governance: As the sole director and 100% shareholder, ongoing financial discipline and transparent reporting will be essential.