Company Number: 13970136

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: DECLINE
   Affility Ltd demonstrates extremely limited financial strength with negligible net assets (£21 in 2025) and minimal working capital. The company is in its infancy (incorporated 2022) and shows only marginal improvement in net current assets (£11 to £21) over two years. Cash balances are low and just cover current liabilities, suggesting a fragile liquidity position. The director owns 100% and controls the company, but there is no evidence of substantial revenues or profitability disclosed. The company operates in a niche sector (other membership organizations) with uncertain cash flow generation given the minimal debtor and creditor balances. Overall, the risk of default on credit facilities is high, and the company lacks a robust financial track record or asset base to support lending.

2. Financial Strength:

• Net assets are nominal (£21) and essentially equal to minimal cash and debtor balances minus current liabilities.
• Share capital is £1, indicating very limited equity funding.
• The balance sheet shows no fixed assets, indicating no long-term collateral.
• Current liabilities (£3,378) nearly equal current assets (£3,399), resulting in an almost zero working capital cushion.
• The company is classified as a "small" entity but barely meets the thresholds with very limited resources.
• No retained earnings or profit reserves beyond a small P&L reserve (£20).

3. Cash Flow Assessment:

• Cash at bank (£3,256) slightly exceeds current liabilities (£3,378), implying tight liquidity.
• Debtors are minimal (£143), suggesting limited sales or slow collection.
• Creditors mainly consist of net wages (£3,070), indicating ongoing payroll obligations that strain cash resources.
• The company’s operations appear to be cash neutral or slightly cash negative.
• No indication of external financing or credit lines to support operations.

4. Monitoring Points:

• Track cash flow closely for any signs of tightening liquidity.
• Monitor changes in current liabilities, particularly wages and tax obligations.
• Review debtor turnover and realization rates for potential improvement in cash collections.
• Watch for any capital injections or equity funding to strengthen the balance sheet.
• Assess the company’s ability to generate meaningful revenues to sustain operations.
• Monitor director actions and potential external guarantees or security offered.