Company Number: SC776497

Analysis Date: 2025-07-29 16:39 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Wallace Integrity Ltd is a newly incorporated micro-entity with limited financial history and minimal assets. The company shows a positive net current asset position (£1,517) and no overdue filings, which indicates compliance and basic financial control. However, the small scale of operations (one employee) and very modest asset base limit the financial resilience and capacity to service larger credit facilities at this time. Lending should be conservative and possibly secured or guaranteed by the controlling director to mitigate risk.

2. Financial Strength:
   The company’s balance sheet as of 31 March 2024 shows total current assets of £2,665 against current liabilities of £1,148, yielding net current assets of £1,517. There are no fixed assets, and net assets equal shareholders’ funds of £1,517, reflecting a very small capital base. The director has provided an unsecured, interest-free loan of £54 to the company, indicating some initial financial support but limited external funding. Overall, the financial base is fragile but not negative.

3. Cash Flow Assessment:
   Current assets are minimal and likely consist predominantly of cash or equivalents given the nature of a micro company. The net working capital is positive but very limited, suggesting that liquidity is tight and the company may have limited buffer to absorb unexpected cash flow shocks. With only one employee and presumably limited operational expenses, cash burn is likely low, but the ability to withstand delays in receivables or increased payables is constrained.

4. Monitoring Points:

• Watch for growth in turnover and expansion of asset base in subsequent accounts to confirm business viability.
• Monitor cash flow statements and any new borrowing or director advances that could impact liquidity.
• Track timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Observe any changes in management or PSC structure, especially given the single controlling director.
• Review any significant changes in liabilities that might pressure working capital.