TECHNOLOGY AND INNOVATION SUPPORT CENTER LTD

Executive Summary

Technology and Innovation Support Center Ltd demonstrates modest financial improvements but operates with tight liquidity and minimal equity. Conditional credit approval is recommended, contingent upon close monitoring of cash flow and working capital management to safeguard debt repayment capacity. The company's small scale and low cash reserves warrant vigilance to mitigate short-term liquidity risks.

TECHNOLOGY AND INNOVATION SUPPORT CENTER LTD - Analysis Report

Company Number: 12526224

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Technology and Innovation Support Center Ltd shows some improvement in net assets and net current assets as of the latest accounts (March 2024) compared to the prior year, indicating a positive financial trajectory. However, the company remains highly reliant on short-term liabilities with current liabilities significantly high relative to current assets over the years. The net current asset position improved to £37,768, but liquidity remains tight with cash balances falling sharply to £7,505. The absence of employees suggests limited operational scale or possible outsourcing. Credit approval is conditional on ongoing monitoring of cash flow and working capital management to ensure debt servicing capability.

2. Financial Strength
   The company’s net assets increased to £37,768 in 2024 from £13,521 in 2023, reflecting modest retained earnings accumulation. The balance sheet shows no long-term assets or liabilities, focusing mainly on current assets and current liabilities. Current assets decreased from £428,976 to £179,088, largely due to reduced debtors and inventories, while current liabilities dropped significantly from £415,455 to £141,320. The equity base is minimal (£100 share capital plus reserves), highlighting a small capital buffer. Overall, the balance sheet is stable but fragile, with limited financial strength to absorb shocks.

3. Cash Flow Assessment
   Cash on hand dropped sharply from £40,582 in 2023 to £7,505 in 2024, indicating potential liquidity pressure. Debtors also declined substantially, improving working capital turnover but possibly signaling reduced sales or delayed payments. The company has managed to reduce current liabilities significantly, which improves short-term solvency. However, the cash position remains very low, raising concerns about immediate liquidity and the ability to meet unexpected expenses or short-term obligations without additional financing or cash inflows.

4. Monitoring Points

• Cash balances and cash flow forecasts: closely monitor to ensure sufficient liquidity for operational needs and debt servicing.
• Debtor collection efficiency: track aging of trade debtors to avoid cash flow bottlenecks.
• Current liabilities management: ensure no build-up of overdue payables that may strain relationships with suppliers or creditors.
• Profitability trends: since retained earnings are the main source of equity growth, ongoing profitability is critical.
• Operational scale and business model changes: with zero employees reported, confirm business continuity and management capacity.