TWIN2 CREATIVE LIMITED

Executive Summary

Twin2 Creative Limited is a very early-stage IT consultancy company with weak but improving financial metrics. The company shows limited liquidity and small net assets, relying on director funding support. Conditional credit approval is possible with strict monitoring of working capital, cash flow, and tax obligations.

TWIN2 CREATIVE LIMITED - Analysis Report

Company Number: 13938553

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Twin2 Creative Limited is a very young private limited company (incorporated 2022) operating in IT consultancy. The company shows modest net assets (£342) and a small negative net working capital (£278) as of the latest accounts (Feb 2024). While it does not demonstrate strong liquidity or financial robustness yet, there is a slight improvement versus prior year. The director is the sole significant controller and has engaged in interest-free loans to the company, indicating some shareholder support. Credit approval can be considered if loan facility size is limited and monitored closely due to limited financial history and current working capital deficits.

2. Financial Strength: The balance sheet is thin with total net assets of only £342 and net current liabilities of £278. Fixed assets are minimal (£620), and the company is reliant on short-term assets with current liabilities exceeding current assets. Shareholders’ funds are low but have increased slightly from £29 the previous year, indicating minimal retained earnings or capital injection. The company had limited employees (1-2) and modest operations which is typical for a micro to small enterprise at an early stage. Overall financial strength is weak but stable given the early lifecycle and director support.

3. Cash Flow Assessment: Cash balances are low (£1,367) and have declined from the prior year (£2,349), indicating tight liquidity. Debtors are a significant component of current assets (£4,391), suggesting some client receivables exposure. Current liabilities due within one year amount to £6,036, including corporation tax owed (£3,036), which could pressure short-term cash flow. The company has extended interest-free loans to its director, showing some internal cash movement but limited external cash inflow evidence. The negative net current assets reflect working capital constraints that could affect ability to meet immediate obligations without additional funding or cash conversion improvements.

4. Monitoring Points:

• Track changes in net current assets and cash balances to ensure liquidity does not deteriorate further.
• Monitor debtor aging and collectability to reduce working capital strain.
• Observe any additional capital injections or director loans that support solvency.
• Watch for timely payment of corporation tax liabilities to avoid penalties.
• Assess revenue growth and profitability trends once P&L data is available to confirm business viability.