SCALE FACTORY LIMITED

Credit Analysis: SCALE FACTORY LIMITED (formerly TEN10 SOLUTIONS LIMITED)

1. Credit Opinion: CONDITIONAL

Reasoning: The company has a solid historical financial foundation, as evidenced by its 2014 accounts showing strong profitability and a healthy net asset position. However, the available financial data is over a decade old and does not reflect its current trading performance, significant name changes, or recent board restructuring. The lack of recent financial accounts is a major credit risk. Approval is conditional upon the provision of up-to-date management accounts and the latest filed financial statements to assess current liquidity, debt levels, and profitability. The recent resignation of several directors also warrants further investigation.

2. Financial Strength

• Balance Sheet (2014): The company demonstrated a strong and improving balance sheet. Net assets grew from £675,875 (2013) to £788,712 (2014), driven by retained profits. The company had no long-term debt, with all liabilities being current. The debtors balance (£1.38M) is significant and represents a key risk, as it is the primary source of working capital. The company was in a net current asset position of £772,768, providing a good buffer.
• Capital Structure: The company is equity-funded with a shareholders' funds position of £788,712. The directors had minimal loans to the company, indicating clean financial stewardship at that time. The company is wholly owned by Ten10 Group Limited, a corporate entity, which provides a parent company support structure but also creates dependency.

3. Cash Flow Assessment

• Liquidity (2014): The company had a cash balance of £238,470, which, combined with the strong net current asset position, suggests good short-term liquidity. However, the large debtor balance (£1.38M) means the company is reliant on timely collections to maintain cash flow. The directors' expenses were reimbursed post-year-end, which is a positive sign of disciplined cash management.
• Working Capital: The company operates on a working capital cycle that appears to be debtor-led. The significant increase in debtors (from £1.39M to £1.38M) relative to cash suggests that growth may have been funded by stretching debtor terms or delaying creditor payments. This is a key monitoring point.

4. Monitoring Points

• Latest Accounts: The most significant risk is the lack of current financial data. The next accounts are due by 31 January 2027. We must review these as soon as they are filed to assess the company's current financial health.
• Director Changes: The resignation of three directors in March 2026 (Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers) is a major change in management and control. We need to understand the reasons for these departures and the current management team's experience and stability.
• Name Change: The recent name change from "TEN10 SOLUTIONS LIMITED" to "SCALE FACTORY LIMITED" (October 2026) may signal a strategic shift or rebranding. This needs to be understood in the context of the business's current operations and future plans.
• Debtor Days: For a consultancy business, debtor days are critical. The 2014 data shows a high debtor balance. We need to monitor this metric in the latest accounts to assess collection efficiency and cash conversion.
• Parent Company Support: While the parent company (Ten10 Group Limited) is a positive, we should also assess the financial health of the group to understand the level of support available.

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