WATCH THIS SPCE LTD

Executive Summary

Watch This Spce Ltd maintains a stable financial position with positive net assets and adequate working capital, supporting its current creditworthiness. However, fluctuations in cash and receivables and a small equity base suggest cautious credit extension with ongoing monitoring of liquidity and debtor management. Overall, the company is suitable for conditional credit approval, contingent on continued strong cash flow and debtor control.

WATCH THIS SPCE LTD - Analysis Report

Company Number: 12783327

Analysis Date: 2025-07-20 18:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Watch This Spce Ltd shows modest but stable net asset positions and working capital over the last three years, indicating the ability to meet short-term liabilities. However, the company’s cash position fluctuated significantly from £6,843 in 2023 to £21,750 in 2024, while trade debtors decreased sharply, which may signal collection variability or changes in business volume. The small scale and relatively low equity (£11,580) suggest limited financial buffer against adverse events. Given the active status, no overdue filings, and stable director control, the company appears creditworthy but requires monitoring of liquidity and debtor management to confirm ongoing repayment capability.

2. Financial Strength:

• Net assets stood at £11,580 as of 31 July 2024, down slightly from £12,070 the prior year.
• The balance sheet is simple with minimal fixed assets (£774) and total current assets of £32,514.
• Share capital is nominal (£90), indicating a small equity base.
• Current liabilities increased marginally to £21,561, with significant taxation and social security creditors (£14,298).
• Retained earnings decreased slightly, reflecting minor erosion of reserves, but overall equity remains positive.

3. Cash Flow Assessment:

• Cash balances improved substantially to £21,750 by the end of 2024, suggesting recent liquidity improvements.
• Trade debtors reduced markedly from £25,068 to £10,764, which could reflect tighter credit control or reduced sales, impacting future cash inflows.
• Net current assets remain positive at £10,953, indicating adequate short-term liquidity.
• The company’s working capital is sufficient to cover current liabilities, but tight margins and fluctuations in receivables warrant careful cash flow management.

4. Monitoring Points:

• Track debtor days and aging to ensure timely collections, as the sharp decline in debtors may affect revenue trends.
• Monitor tax and social security creditor balances to prevent buildup of arrears, given these form a large portion of current liabilities.
• Review cash flow statements periodically to verify consistency in liquidity improvements.
• Observe any changes in directors or ownership that could affect governance and financial stewardship.
• Consider impact of any economic downturn on company’s service activities classified under SIC 96090.