BLINKBI LTD

Executive Summary

Blinkbi Ltd shows very limited financial strength with minimal net assets and no cash reserves, relying heavily on director loans for funding. The company’s liquidity is weak, and there is no evidence of operational cash flow generation, making it unable to support new credit facilities. Without a significant turnaround in financial performance or capital injection, credit exposure would be high risk.

BLINKBI LTD - Analysis Report

Company Number: 12925628

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: DECLINE
   Blinkbi Ltd exhibits extremely limited financial resources and minimal net asset value (£91 as of 31 Oct 2023). The company’s current liabilities almost match current assets, resulting in negligible net working capital. The director’s loan account is the primary debtor, indicating internal funding rather than external revenue generation. Cash reserves have depleted entirely from £62,796 in 2020 to zero in 2023, raising concerns about liquidity and operational sustainability. Absence of turnover data and no employees further suggest the business may be dormant or not generating significant trading income. Given these weaknesses, the company is unlikely to reliably service new credit facilities.

2. Financial Strength:
   The balance sheet is very weak, showing minimal net assets and net current assets just above zero (£91). The company relies heavily on director advances (£2,439 debtor balance), which are unsecured and repayable on demand. Current liabilities (£2,348) are almost equal to current assets (£2,439), demonstrating tight liquidity with no buffer. The drastic reduction in cash from £62,796 in 2020 to nil in 2023 indicates poor cash management or lack of incoming cash flow. The company’s equity is minimal, with share capital of only £1, and accumulated reserves of £90, evidencing negligible retained earnings.

3. Cash Flow Assessment:
   Liquidity is a major concern; the company holds no cash on hand and depends on director loans to fund operations. Current liabilities are nearly equal to current assets, meaning working capital is insufficient to cover short-term obligations comfortably. The lack of turnover or external income reported suggests the company does not generate operational cash inflows, increasing reliance on external funding or director support. This liquidity profile is not suitable for extending credit without substantial guarantees or additional security.

4. Monitoring Points:

• Track changes in cash balances and debtor composition to confirm if operational revenue replaces director loans.
• Monitor current liabilities closely, especially tax and social security obligations which represented a significant portion previously (£8,399 in 2022 down to £848 in 2023).
• Watch for improvements in net current assets and net asset position.
• Confirm any changes in business activity and turnover generation to assess potential for sustainable cash flows.
• Observe director loan account movements for repayment or further advances indicating reliance on insider funding.