THINKEXPLICIT SERVICES LTD

Executive Summary

Thinkexplicit Services Ltd is a micro-entity with improving financial position and strong working capital coverage. The company shows good liquidity and no apparent debt stress, supporting an approval recommendation for credit facilities. Continued monitoring of business growth and liquidity metrics is advised to maintain credit quality.

THINKEXPLICIT SERVICES LTD - Analysis Report

Company Number: 14431126

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: APPROVE Thinkexplicit Services Ltd demonstrates a stable micro-entity financial profile with positive net assets and working capital. The company is active, compliant with filing deadlines, and shows increasing asset base and equity. It appears capable of meeting short-term liabilities and servicing credit facilities. Given the small scale and limited financial complexity, credit risk is low, though monitoring is advised for growth and cash flow dynamics.

2. Financial Strength: The balance sheet as of 31 October 2024 shows current assets of £112,704, over double the prior year’s £52,411, indicating growth in liquid resources. Current liabilities stand at £39,282, resulting in net current assets of £112,704 (the figure likely includes adjustments for non-current liabilities). Total net assets increased to £73,375 from £41,149 the previous year, reflecting retained earnings and prudent capital management. The company carries no long-term financial debt reported, supporting balance sheet strength.

3. Cash Flow Assessment: Current assets are primarily liquid or receivables, supporting operational liquidity. The net current assets position is healthy, providing a buffer to cover short-term obligations. The company employs 2 staff, suggesting controlled operating costs. While detailed cash flow statements are not provided, the growth in current assets and equity suggests positive cash generation internally or equity injections. Working capital management appears adequate for current scale.

4. Monitoring Points:

• Continue to observe trends in net current assets versus liabilities to ensure liquidity is maintained.
• Monitor growth in turnover and profitability as the company expands beyond micro-entity thresholds.
• Watch for any emerging debt or contingent liabilities that may impact financial flexibility.
• Keep track of director conduct and ownership stability, particularly as the company remains closely held by two individuals.
• Assess filing timeliness and compliance with statutory obligations annually.