ADFUSION LIMITED

Executive Summary

Adfusion Limited is a micro-entity with very limited equity and significant long-term liabilities, creating moderate solvency concerns despite timely statutory filings and improved short-term liquidity. The company’s minimal scale and lack of detailed profitability data warrant further investigation into its financial sustainability and capital structure. Overall, the company maintains compliance but presents a medium risk profile for investors seeking financial stability.

ADFUSION LIMITED - Analysis Report

Company Number: 13282713

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: MEDIUM
   The company shows some positive working capital in the most recent year but has very minimal net assets and equity. The relatively high long-term creditors and very low share capital raise concerns about solvency risks, despite no overdue filings or obvious governance issues.

2. Key Concerns:

• Solvency and Capital Structure: Net assets reduced to £6 from £158 last year, with substantial non-current liabilities (£9,853) not clearly explained, suggesting potential solvency pressure.
• Limited Equity and Share Capital: Share capital is only £1, indicating minimal owner investment and financial buffer.
• Profitability and Sustainability: Lack of profit & loss data and accumulated reserves, combined with only one employee, raises questions about operational scale and sustainability.

3. Positive Indicators:

• No Filing Overdue: Both accounts and confirmation statements are filed on time, indicating good compliance with statutory requirements.
• Improved Working Capital: Net current assets improved significantly from negative in 2023 to positive £8,644 in 2024, which suggests better short-term liquidity management.
• Active Website and Contact Information: Online presence and active communication channels may indicate ongoing business activity and commercial engagement.

4. Due Diligence Notes:

• Investigate the nature and terms of the £9,853 non-current liabilities appearing in 2024 and how these affect long-term solvency.
• Review detailed profit and loss performance and cash flow statements (not available in micro-entity filings) to assess operational profitability and sustainability.
• Confirm any related party transactions or director loans that may impact financial position.
• Evaluate the business model and revenue streams to understand growth prospects beyond the micro entity scale.
• Verify director history for any regulatory or conduct issues (none apparent here but standard practice).