THE BACKGROUND CHECKER LIMITED

Executive Summary

The Background Checker Limited is a small but growing private company with improving financial strength and liquidity. Its current cash and net asset positions provide comfort for modest credit exposure. Continued monitoring of operational cash flow and creditor management is advised to sustain creditworthiness.

THE BACKGROUND CHECKER LIMITED - Analysis Report

Company Number: 13115971

Analysis Date: 2025-07-20 14:21 UTC

1. Credit Opinion: APPROVE
   The Background Checker Limited shows positive financial progression with increasing net current assets and shareholders' funds over the past three years. The company maintains a modest but improving cash position relative to current liabilities, indicating a capacity to service short-term obligations. The director’s consistent oversight and absence of adverse filings or disqualifications support sound management. While the company is young and small, its financial trajectory and working capital position support approval for modest credit facilities, assuming continued operational performance.

2. Financial Strength:
   The balance sheet demonstrates steady growth in net current assets from £1,023 in 2021 to £12,615 in 2024, with shareholders' funds increasing correspondingly from £1,023 to £12,615. The company holds no long-term borrowings disclosed, and equity is built primarily from retained earnings (£12,515 profit and loss reserve). Share capital is minimal (£100), typical for a small private limited company. Current liabilities remain moderate and manageable relative to cash and assets, indicating a solid short-term financial position for the scale of operations.

3. Cash Flow Assessment:
   Cash balances have risen from £2,366 in 2021 to £23,441 in 2024, showing improved liquidity and operational cash generation. Current liabilities increased only slightly from £1,343 to £10,826 over the same period, maintaining a comfortable liquidity buffer. Net current assets are positive and growing, reflecting sufficient working capital to meet liabilities as they fall due. The company’s cash-to-current liabilities ratio is approximately 2.2x for 2024, signaling good short-term liquidity and low risk of cash flow stress.

4. Monitoring Points:

• Track continued revenue growth and cash generation to support expansion and debt servicing.
• Monitor creditor days and tax liabilities to avoid accumulation of overdue payables.
• Watch for any material changes in current liabilities or unusual related party transactions (noting dividends paid to director).
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Observe sector impacts on the “other information service activities” SIC code given the competitive market.