TWIN SPARX LTD

Executive Summary

TWIN SPARX LTD is a newly formed micro company with a modest positive net asset base and no reported liabilities beyond current debts. The company’s financial profile is limited by its short operating history and small scale, resulting in a conditional credit recommendation pending further evidence of operational cash flow and profitability. Close monitoring of future financial filings and cash flow performance is essential to confirm creditworthiness.

TWIN SPARX LTD - Analysis Report

Company Number: 14616268

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TWIN SPARX LTD is a newly incorporated micro-entity with limited financial history and modest asset base. The net current assets of £6,608 indicate a small working capital buffer. Given the company's young age and limited scale, there is insufficient evidence of established cash flow generation or profitability trends. Approval is recommended on a conditional basis, subject to ongoing monitoring of cash flow performance and timely filing of future accounts to assess financial stability and repayment capability.

2. Financial Strength:
   The balance sheet shows total net assets of £6,608, comprised entirely of current assets less current liabilities. There are no fixed assets or long-term liabilities reported. The company’s equity equals its net assets, reflecting a clean but minimal capital structure. The absence of debt reduces financial risk but also indicates a small operational scale. Overall, the company is solvent with a positive net asset position, but its financial strength is limited by size and lack of historical financial data.

3. Cash Flow Assessment:
   Current assets (£15,693) exceed current liabilities (£9,085) resulting in positive net working capital of £6,608, which suggests short-term liquidity is adequate. However, the small absolute amounts and zero employees signal very limited operational activity and cash inflows at this stage. Without profit and loss data or cash flow statements, the ability to sustain operations and service potential debt is unclear and requires close monitoring.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statements to maintain compliance and update financial position.
• Development of profit and loss data to assess earnings quality and sustainability.
• Monitoring cash flow statements for evidence of operational cash generation and capacity to meet short-term liabilities.
• Any increase in liabilities or significant changes in working capital structure.
• Operational scale and client acquisition progress, given the industry focus on engineering design and IT consultancy.