ADNERB LIMITED

Executive Summary

Adnerb Limited is a newly formed micro-entity with a weak financial position characterized by negative net assets and a working capital deficit. Reliance on director advances underscores limited operational cash flow, resulting in an inability to currently support external credit. Credit facilities are not recommended at this stage without significant improvement in liquidity and equity.

ADNERB LIMITED - Analysis Report

Company Number: 15164298

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: DECLINE
   Adnerb Limited is a newly incorporated micro-entity with a very weak financial position as of the latest accounts dated 30/09/2024. The company shows net liabilities of £5,595 and negative net current assets of £5,095, indicating insufficient short-term liquidity to meet its obligations. The director has advanced funds to the company (£7,982) but this appears to be outstanding, reflecting reliance on director financing rather than operational cash flows. There is no evidence of profitability or positive cash generation yet. Given the negative equity and liquidity shortfall, the company currently lacks the financial capacity to service external debt or credit facilities without additional capital injection or operational improvement.

2. Financial Strength:
   The company’s balance sheet reveals no fixed assets and minimal current assets (£2,887), offset by current liabilities of £7,982. This results in a net liability position of £5,595. Shareholders’ funds are negative, reflecting accumulated losses or initial funding deficits. The company is dependent on director advances for liquidity. As a micro-entity with just one employee and operating in the social work sector without accommodation, it may have limited operating scale and revenue base at this stage.

3. Cash Flow Assessment:
   Cash flow appears strained with working capital deficits. The current liabilities exceed current assets by over £5,000, which may result in payment difficulties if liabilities crystallize. The company’s cash flow is likely supported by director loans, but this is not sustainable long-term without operational cash inflows. No audit was required, and accounts are unaudited, so detailed cash flow information is unavailable. However, the net current liabilities signal a fragile liquidity position.

4. Monitoring Points:

• Future filings for improvement in net assets and working capital.
• Cash flow statements or bank statements evidencing operational revenue cash inflows.
• Director loan repayments or additional capital injections.
• Timely filing of accounts and confirmation statements.
• Any changes in business activity or expansion that may enhance revenue and profitability.