Company Number: 13667818

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: DECLINE
   Assessment360 Limited currently shows significant financial distress with net liabilities of £161,862 as at 29 February 2024, a worsening position compared to the prior year. The company’s current liabilities (£135,603) exceed current assets (£79,517), leading to negative net working capital of £56,086, indicating liquidity challenges. The company also carries secured bank loans of £150,333, secured against all assets, further constraining financial flexibility. Given the ongoing net liability position, negative working capital, and lack of positive retained earnings, the company’s ability to service additional debt or meet commercial obligations on time is questionable. Without a clear plan to improve cash flow or equity injection, credit approval is not recommended.

2. Financial Strength:
   The balance sheet reflects a weak financial position. Net assets and shareholder funds are deeply negative (£-161,862), indicating accumulated losses and eroded equity. Fixed assets are minimal (£557 net book value), with the bulk of assets held as current assets (£79,517), mostly debtors (£60,607). The company’s secured bank loan of £150,333 represents a material long-term liability. The deterioration from the previous year’s net liabilities (£214,515) to the current year shows some improvement but remains precarious. Overall, the company lacks a strong capital base and is highly leveraged, leading to a fragile financial structure.

3. Cash Flow Assessment:
   The company’s cash at bank is low (£18,910), insufficient to cover near-term current liabilities (£135,603). Debtor levels have decreased significantly from £211,177 to £60,607, which may indicate tightening credit control or reduced sales, potentially impacting cash inflows. Negative net current assets and working capital deficits highlight liquidity risk and difficulty in meeting short-term obligations. The company’s reliance on external financing is evident, and no internal cash generation is apparent from the data provided. The cash flow situation is tight, raising concerns about the company’s operational resilience.

4. Monitoring Points:

• Liquidity ratios including current ratio and quick ratio to track improvements or deterioration in working capital
• Debtor aging and collection efficiency to monitor cash inflows
• Bank loan covenant compliance and potential refinancing risks
• Profit and loss trends once full income statements are available to assess operational performance
• Any equity injections or restructuring plans by the controlling shareholder Blueberry Consultants Holdings Limited (75-100% ownership)
• Directors’ actions and strategic plans to return to profitability and improve the balance sheet