TEST-N-TELL LTD

Executive Summary

Test-N-Tell Ltd is a young micro-entity with a modest but stable balance sheet and positive net working capital. The company’s recent decline in net assets and current assets warrants cautious credit exposure with conditions. Continued monitoring of financial trends and cash flow generation is recommended before increasing credit limits.

TEST-N-TELL LTD - Analysis Report

Company Number: 14272094

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Test-N-Tell Ltd is a recently incorporated micro-entity operating in business and domestic software development. The company shows positive net assets and no overdue filings, which is encouraging. However, it has experienced a material decrease in net current assets and net assets from £37,093 in 2023 to £26,608 in 2024, reflecting a contraction in working capital and possibly operational scale or revenue. The absence of employees and limited fixed assets indicates a lean operation, potentially owner-managed. Given the minimal financial scale and limited history, credit approval should be conditional on continued monitoring and possibly secured or limited credit exposure.

2. Financial Strength:
   The balance sheet shows net assets of £26,608 as of 31-Aug-2024, down from £37,093 a year earlier. Fixed assets are negligible (£275), with most assets in current assets (£26,730), primarily cash or receivables. Current liabilities have reduced significantly to £397 from £11,182, improving short-term solvency. The company’s financial position is modest but stable for a micro-entity. Shareholders’ funds equal net assets, indicating no external debt on the balance sheet. The drop in net assets should be investigated to understand if it relates to operational losses or capital withdrawals.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £26,333, suggesting adequate liquidity to meet short-term obligations. The very low current liabilities and positive working capital indicate no immediate liquidity risk. However, the decline in current assets from £47,746 to £26,730 signals potential cash outflows or reduced receivables. The company’s lack of employees and small asset base suggest low fixed overheads, which is positive for cash conservation. Cash flow appears sufficient to service modest credit lines, but limited historic data restrains confident projections.

4. Monitoring Points:

• Track net asset and working capital trends to detect further erosion or improvement.
• Review profit and loss statements when available to assess operating profitability and cash generation.
• Monitor director transactions or capital injections, given the company’s sole control by Mr. Lanovyi.
• Watch any changes in current liabilities or emergence of external debt.
• Confirm ongoing filing compliance and any changes in operational scale or employee numbers.