A THIN LINE BETWEEN LTD

Executive Summary

A Thin Line Between Ltd shows significant solvency and liquidity concerns with persistent negative net assets and current liabilities exceeding current assets. While regulatory compliance is maintained and governance is clear, the company’s financial position suggests high risk without evident operational improvement. Further investigation into funding sources and business viability is recommended before considering investment.

A THIN LINE BETWEEN LTD - Analysis Report

Company Number: 13878999

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: HIGH
   The company exhibits sustained negative net assets and net current liabilities over the last three reported years, indicating an ongoing solvency risk. The micro-entity size and absence of audit provide limited transparency, but the consistent deficit and lack of liquidity are concerning.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities stand at approximately £11,714, unchanged over multiple years, showing no improvement in financial position.
• Poor Liquidity: Current liabilities significantly exceed current assets (£12,835 vs. £192 in the latest year), resulting in substantial net current liabilities and indicating an inability to meet short-term obligations.
• Lack of Financial Growth or Profitability: No evidence of increased assets or reduction of liabilities; fixed assets and current assets have diminished, reflecting potential operational or funding challenges.

3. Positive Indicators:

• Compliance: The company is current with its statutory filings (accounts and confirmation statements) and is not in liquidation or administration, indicating regulatory compliance and ongoing operation.
• Sole Director Ownership: The single director and 75-100% shareholder control suggest clear governance lines without apparent conflicts of control.
• Small Scale Operation: As a micro-entity with one employee (the director), overheads may be low, potentially allowing for lean operations or restructuring opportunities.

4. Due Diligence Notes:

• Investigate the source of ongoing funding or shareholder loans sustaining the company given persistent negative equity.
• Review cash flow statements and management accounts (if available) to assess operational cash inflows and outflows not visible in micro-entity filings.
• Understand the business model and revenue streams in the context of the SIC codes (artistic creation and specialised design) to evaluate potential for turnaround or growth.
• Clarify any contingent liabilities or related party transactions that may impact solvency.
• Confirm the director’s plans or intentions regarding recapitalisation or restructuring.