AGILE COMPANION TECHNOLOGIES LTD

Executive Summary

Agile Companion Technologies Ltd has experienced a steep deterioration in financial strength and liquidity over the last year, with a marked decline in net assets and working capital. The company’s thin capitalization and cash flow constraints raise significant concerns about its ability to service debt. Given these risks, credit approval is not recommended without substantial guarantees or financial support.

AGILE COMPANION TECHNOLOGIES LTD - Analysis Report

Company Number: 12800959

Analysis Date: 2025-07-19 12:21 UTC

1. Credit Opinion: DECLINE
   Agile Companion Technologies Ltd shows a significant deterioration in its financial position from 2023 to 2024. Shareholders' funds have plummeted from £6,925 in 2023 to just £1,076 in 2024, representing an 84% decline. Similarly, net current assets have fallen from £7,035 to £1,456, indicating a sharp decline in liquidity. This financial weakening raises concerns about the company’s ability to meet short-term obligations and service new or existing credit facilities. Given the steep decline and limited asset base, extending credit without strong mitigating factors would be high risk.

2. Financial Strength:
   The company's balance sheet shows very low fixed assets (£270) and a micro-entity scale operation with just two employees. The drastic drop in net assets and shareholders’ funds over one year suggests either significant losses or capital withdrawals. The company remains lightly capitalized with total assets less current liabilities of only £1,726 as of August 2024. This thin equity base limits the company’s buffer against adverse events, reducing financial resilience.

3. Cash Flow Assessment:
   Current assets have decreased markedly from £7,566 to £2,638 while current liabilities more than doubled from £531 to £1,182, squeezing net working capital. This negative trend implies potential cash flow stress and reduced liquidity to cover short-term debts. Without positive cash flow or increased working capital, the company may struggle to maintain operational commitments and meet creditor demands.

4. Monitoring Points:

• Monitor quarterly cash flow statements to detect any ongoing liquidity issues.
• Watch for further declines in net assets or shareholders' funds in upcoming filings.
• Review management’s plans to stabilize or grow revenue and profits to restore financial health.
• Assess any changes in director or ownership structure that could impact governance and credit risk.