Company Number: 14182936

Analysis Date: 2025-07-29 15:54 UTC

1. Credit Opinion: DECLINE
   Butterfly Technologies Ltd is a very early-stage micro-entity with minimal financial history and no employees. Its balance sheet shows only current assets of approximately £13k and no fixed assets or liabilities. The company has not generated any notable net assets growth and has not demonstrated revenue generation or profitability. The lack of staff and limited operating scale suggest minimal cash flow generation capacity. Additionally, the recent director turnover and very small share capital (£2) raise concerns about management stability and financial stewardship. Given its infancy, tiny asset base, and uncertain operating model, the company currently lacks the financial strength and trading history to confidently service debt or meet commercial obligations.

2. Financial Strength:
   The company’s net assets stand at £13,115 as of 30 June 2024, down slightly from £14,302 the prior year. There are no fixed assets, indicating no investment in property or equipment, and current assets consist likely of cash or equivalents. There are no current liabilities, so working capital is positive but minimal. The micro-entity classification means filing requirements are reduced, but also limits available financial data. Overall, the balance sheet is stable but very thin, reflecting a start-up phase with very limited financial resources.

3. Cash Flow Assessment:
   With zero employees and no reported liabilities, Butterfly Technologies Ltd appears to maintain a small cash buffer but no evident revenue or operating cash flow. The unchanged current asset balance over the past year suggests no significant cash inflows or outflows. Lack of working capital beyond this minimal amount and no accounts payable or receivable indicate limited business activity. The company’s ability to generate sufficient cash flow to service debt or absorb financial shocks is highly constrained.

4. Monitoring Points:

• Track revenue generation and profitability as the company matures beyond start-up phase.
• Monitor director stability and management changes to assess continuity and governance.
• Watch cash balances and current assets relative to liabilities for liquidity trends.
• Review any filings for material changes in business model, scale, or capital structure.
• Assess any external financing or guarantees that may support credit risk.