Company Number: 13276200

Analysis Date: 2025-07-29 15:23 UTC

1. Credit Opinion: DECLINE. Boxee Group Ltd shows significant deterioration in net assets and equity from £63,896 in 2023 to £6,175 in 2024, indicating a sharp decline in financial strength. The company’s liabilities, especially accruals and deferred income, have increased substantially, and provisions for liabilities have appeared in 2024, which raises concerns about potential off-balance sheet risks or future cash outflows. The drastic drop in current assets and net current assets suggests liquidity pressure. As a micro-entity with a thin equity base and no audit, the reliability of the accounts is limited. The company’s ability to service debt or new credit facilities is questionable without evidence of operational turnaround or capital injection.

2. Financial Strength: The balance sheet shows a marked decline in fixed and current assets and a corresponding increase in current and long-term liabilities. Net current assets fell from £248,533 in 2023 to £133,966 in 2024, while total net assets dropped from £63,896 to £6,175. The presence of provisions for liabilities (£38,610) and increased accruals/deferred income (£96,717) further weakens the financial position. Shareholders’ funds are minimal at £6,175, indicating almost no buffer to absorb losses or withstand financial stress. The capital base is nominal (£200 share capital), offering limited security for creditors.

3. Cash Flow Assessment: The significant reduction in current assets from £449,545 to £180,496 and the increase in current liabilities from £211,192 to £70,008 (though this appears reduced in absolute, the large deferred income and provisions suggest cash flow timing issues) imply tightening liquidity. The company may face working capital constraints. The lack of detailed cash flow statements limits precise evaluation, but trends suggest cash generation is weak or negative. The rise in accruals and provisions hints at potential cash outflows not yet realized, which could further strain liquidity.

4. Monitoring Points:

• Monitor quarterly management accounts for cash flow trends and working capital management.
• Watch for changes in provisions and accruals that could signal emerging liabilities.
• Track any capital injections or shareholder loans to bolster equity.
• Review turnover and profitability trends to assess operational recovery.
• Confirm timely filing of accounts and returns to detect early signs of distress.
• Evaluate director actions and any restructuring efforts to improve financial health.