QTS-GLOBAL LTD

1. Credit Opinion: CONDITIONAL

QTS-GLOBAL LTD presents a liquid, debt-free balance sheet with net assets of £78,430 and cash of £111,170 at 31 July 2026. The company has repaid its Bounce Back Loan and holds no bank borrowings. However, the filed accounts are filleted and no profit and loss account is available, so debt service capacity cannot be verified from earnings. Significant corporation tax and other tax liabilities of £38,140 fall due within one year, and directors’ loan accounts remain outstanding at the balance sheet date. A modest credit facility could be considered, conditional on receipt of current management accounts and confirmation that tax liabilities and directors’ loans are being settled on time.

2. Financial Strength: Balance Sheet Health

• Net assets have improved to £78,430 (2026) from £43,983 (2025) and £6,359 (2023), indicating retained profits in the current cycle.
• Shareholders’ funds equal net assets at £78,430 against called-up share capital of only £300.
• Tangible fixed assets are minimal at £6,661; the business is asset-light.
• Total liabilities of £54,066 are all current. There are no long-term creditors or bank loans at year end.
• Current liabilities comprise tax £38,140, social security £2,679, trade creditors £4,155, other creditors £6,842 and accruals £2,250.
• Net current assets are £73,434, giving a current ratio of approximately 2.4:1.

3. Cash Flow Assessment: Liquidity and Working Capital

• Cash at bank increased to £111,170 (2026) from £96,789 (2025) and £2,430 (2023), representing roughly 87% of total assets.
• Debtors are low at £16,330, with trade debtors of only £204, suggesting receipts are collected promptly or sales are predominantly cash-based.
• Working capital improved to £73,434 from £38,105 in the prior year.
• No bank overdraft is in place; cash exceeds current liabilities by approximately £57,000.
• The accounts state that overdrawn directors’ loan accounts were cleared within nine months of the year end; combined balances of approximately £7,191 were outstanding at the balance sheet date.

4. Monitoring Points

• Profitability: request monthly or quarterly management accounts including a profit and loss account, as turnover and earnings are not disclosed in the filed filleted accounts.
• Tax liabilities: monitor settlement of the £38,140 corporation tax and other tax creditors to avoid HMRC enforcement action.
• Directors’ loan accounts: verify repayment of the approximately £7,191 combined balances outstanding at the year end.
• Cash burn: track monthly operating cash outflows against the £111,170 reserve, given 13 employees and no disclosed revenue in the public accounts.
• Ownership and control: 4ug Investments Limited holds between 50% and 75% of shares and voting rights with the right to appoint and remove directors; any change in control could affect credit risk.
• Sector demand: technical and vocational secondary education may be sensitive to public funding and wider economic conditions.