BLACKBOX QUANT LTD

Executive Summary

Blackbox Quant Ltd exhibits ongoing financial distress with negative net assets and deteriorating working capital, posing a high credit risk. The company’s weak liquidity and capital structure do not support additional lending at this time. Close monitoring of operational cash flow and any equity improvements is essential before reconsidering credit terms.

BLACKBOX QUANT LTD - Analysis Report

Company Number: 12581874

Analysis Date: 2025-07-20 14:27 UTC

1. Credit Opinion: DECLINE
   Blackbox Quant Ltd shows persistent net liabilities and negative net current assets over multiple years, indicating insufficient short-term liquidity and an ongoing capital deficit. The company’s inability to cover current liabilities with current assets suggests a weak capacity to service debt or new credit facilities. The negative shareholders’ funds and poor working capital position raise significant credit risk. Without a clear turnaround plan or external capital injection, the company’s financial structure is unsound for additional lending.

2. Financial Strength:
   The balance sheet reveals a consistently negative net asset position, deteriorating from -£30 in 2022 to -£580 in 2025. Fixed assets remain minimal (£2,000), and current liabilities have increased to £4,436 in 2025 against current assets of only £2,356, resulting in a net current liability of -£2,080. The company holds no significant equity buffer, and accumulated losses are eroding capital. This fragile financial foundation reflects weak solvency and high leverage relative to the company’s size.

3. Cash Flow Assessment:
   Working capital is negative and worsening, showing the company’s inability to meet short-term obligations from liquid assets. Current liabilities exceed current assets by a large margin, implying potential cash flow shortages. The lack of positive net current assets suggests difficulties in funding day-to-day operations without external support. There is no indication of strong cash inflows or reserves to mitigate liquidity risk.

4. Monitoring Points:

• Monitor changes in net current assets and working capital closely for any improvement.
• Track accruals and deferred income growth to assess potential hidden liabilities.
• Observe any capital injections or shareholder loans that may strengthen equity.
• Review director’s plans or business model changes that could improve profitability and liquidity.
• Watch for timely submission of accounts and confirmation statements to avoid compliance issues.