TULIP IT LIMITED

Executive Summary

Tulip IT Limited presents a low-risk micro-entity profile with positive net assets and liquidity but lacks a trading history and employee base. Credit approval is cautiously advised for limited exposure, contingent on monitoring operational progress and financial performance. The company’s IT consultancy focus and owner control suggest manageable business risk with appropriate oversight.

TULIP IT LIMITED - Analysis Report

Company Number: 14849284

Analysis Date: 2025-07-29 18:16 UTC

1. Credit Opinion:
   APPROVE with conditions. Tulip IT Limited is a newly incorporated micro-entity within the IT consultancy sector, showing a positive net asset position and clean current liabilities. However, it has no employees and limited operating history, which increases the risk profile. Approval is recommended for modest credit facilities with monitoring due to limited financial history and scale.

2. Financial Strength:
   The company shows net assets of £5,103 and net current assets of £5,252 as at 31 May 2024. Fixed assets are negligible or nil, indicating an asset-light business model typical of IT consultancy. Shareholders’ funds equal net assets, confirming no external debt. The balance sheet is stable but minimal; the company’s micro status and limited scale mean it has low financial buffer against shocks.

3. Cash Flow Assessment:
   Current assets (£6,449) exceed current liabilities (£1,197), resulting in positive working capital of £5,252, reflecting sufficient short-term liquidity. The absence of employees suggests low operating overheads. However, there is no cash flow statement available, and the company’s small size and short trading period limit the visibility of cash generation capacity. Cash flow monitoring is essential before increasing credit exposure.

4. Monitoring Points:

• Track future turnover and profitability once trading history extends beyond the first year.
• Monitor any increase in liabilities or external borrowing.
• Observe working capital trends as the company grows and potentially hires staff.
• Review director conduct and company compliance filings to ensure ongoing governance.