TECHWASTE NORTH EAST LTD

Executive Summary

TECHWASTE NORTH EAST LTD exhibits a sound financial foundation with strong liquidity and growing net assets, supporting a positive credit assessment. The company’s micro-entity status and equity-financed balance sheet minimize financial risk, though monitoring working capital and future profitability is advisable. Overall, the firm appears capable of meeting credit obligations under current conditions.

TECHWASTE NORTH EAST LTD - Analysis Report

Company Number: 14156468

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: APPROVE. TECHWASTE NORTH EAST LTD demonstrates a strong liquidity position with zero current liabilities in the latest year and growing net assets. The company shows steady growth in net assets from £37,239 in 2023 to £48,350 in 2024, indicating sound financial stewardship by management. The absence of current liabilities and positive net current assets provide confidence in the company’s ability to meet short-term obligations and service credit facilities. Given the company’s micro-entity size and early stage, credit exposure should be moderate but appears manageable.

2. Financial Strength: The company’s balance sheet reflects a solid financial position for a micro-entity. Fixed assets increased modestly from £6,230 to £7,100, while current assets grew from £32,500 to £41,250. Current liabilities were fully extinguished in the latest financial year, resulting in net current assets of £41,250 and total net assets of £48,350. Shareholders’ funds equal net assets, indicating no long-term debt or external liabilities. The company is fully equity financed with no gearing, which reduces financial risk.

3. Cash Flow Assessment: With current liabilities at zero and current assets at £41,250, the company shows a strong liquidity position and working capital surplus. This suggests sufficient cash or near-cash assets to meet immediate operational needs and credit commitments. The increase in current assets year-on-year further supports an improving cash flow situation. However, as a micro-entity with only one employee, cash flow volatility may be limited but manageable.

4. Monitoring Points:

• Monitor cash flow trends and working capital to ensure continued liquidity, especially as the company grows.
• Review management of fixed assets and capital expenditure to maintain asset quality and avoid overextension.
• Watch for any emergence of current liabilities or external borrowing that could impact liquidity ratios.
• Assess trading performance and profitability when more detailed profit and loss information becomes available, to confirm sustainable earnings.