TRAFALGAR TECHNICAL SERVICES LTD

Executive Summary

Trafalgar Technical Services Ltd is a financially sound and well-managed IT consultancy with a strong cash position and growing equity. Its positive working capital and low liabilities support good debt servicing capability. Approval is recommended with routine monitoring of operational growth and liquidity metrics as the business develops.

TRAFALGAR TECHNICAL SERVICES LTD - Analysis Report

Company Number: 14555000

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: APPROVE
   Trafalgar Technical Services Ltd demonstrates solid financial resilience for its stage of development. The company shows positive net current assets and consistent shareholder funds growth, indicating prudent financial management. As a newly incorporated IT consultancy, it has no overdue filings or director concerns. The robust cash position and minimal liabilities support its ability to service debt. Approval is granted with standard monitoring, given the company’s early lifecycle and limited operating history.

2. Financial Strength:
   The balance sheet as at 31 December 2024 reflects a healthy financial position with total net current assets of £43,381, up from £37,201 the previous year. Shareholders’ funds have increased from £37,601 to £43,701, reflecting retained earnings growth and absence of significant debt. Fixed assets are minimal (£320 net book value), which is typical for a consultancy. The company’s liabilities are limited to current obligations (£28,895), primarily taxation and social security, with negligible trade creditors. Overall, the company has a strong equity base and low leverage.

3. Cash Flow Assessment:
   Cash at bank stands at £62,553, representing a strong liquidity buffer relative to current liabilities of £28,895. Debtors (£9,723) are moderate and stable. The company maintains positive working capital (£43,381), indicating sufficient short-term liquidity to meet obligations without reliance on external finance. The sizable cash reserves suggest good cash management and the ability to cover operational expenses and debt service comfortably.

4. Monitoring Points:

• Track revenue growth and profitability as the company matures beyond its initial years.
• Monitor debtor days and credit risk exposure to ensure timely collection.
• Watch for changes in tax liabilities and social security obligations which form the bulk of current liabilities.
• Review director’s strategy and financial forecasts annually to assess business development and risk profile evolution.
• Confirm continued compliance with filing deadlines and absence of adverse director conduct.