TECHROS SOLUTIONS LTD

Executive Summary

Techros Solutions Ltd has demonstrated improving financial health with positive net assets and strong working capital for its micro size. The company shows good governance with up-to-date filings, but limited scale and equity require cautious credit exposure. Recommendation is to approve credit facilities with conditions on monitoring liquidity and financial progress.

TECHROS SOLUTIONS LTD - Analysis Report

Company Number: 13126693

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: APPROVE with conditions

Techros Solutions Ltd is a micro private limited company operating in the IT consultancy sector, with a short trading history since incorporation in 2021. The latest accounts show a positive turnaround from prior losses to modest net assets of £969 as of 31 Dec 2023, indicating improving financial stability. The company maintains positive net current assets (£1,929) with low current liabilities (£410), supporting short-term liquidity. However, the overall scale of operations and equity base remains very small, reflecting limited financial buffer and potential vulnerability to cash flow shocks. The single director has maintained timely filings with no overdue accounts or returns, which is a positive governance indicator. Lending exposure should be limited and structured with monitoring due to the micro size and early stage of growth.

2. Financial Strength:

• Net assets improved from £138 in 2022 to £969 in 2023, showing a positive equity trend.
• Current assets increased slightly to £2,339, while current liabilities reduced significantly to £410.
• Net current assets (working capital) strengthened to £1,929, providing liquidity coverage.
• Share capital is minimal (£1), typical for micro companies.
• No fixed assets or long-term liabilities are reported, indicating a simple balance sheet focused on operating cash and receivables.
• Overall, the balance sheet is stable but modest, with limited capital and reserves.

3. Cash Flow Assessment:

• Positive net current assets indicate sufficient short-term resources to meet liabilities.
• Reduction in creditors from £1,558 to £410 suggests improved creditor management or faster payment cycles.
• No audit or profit & loss details filed, so cash flow from operations cannot be fully assessed.
• The small scale and reported employee count (1) imply low operating overhead.
• Liquidity appears adequate for current commitments but tight for significant growth or unexpected expenses.

4. Monitoring Points:

• Continue to monitor timely filing of accounts and confirmation statements.
• Watch net current assets and creditor days for signs of liquidity stress.
• Observe growth in net assets and turnover as indicators of business expansion.
• Confirm no director or company status changes that may affect governance.
• Keep alert for any overdue payments or increased borrowing that could strain cash flow.