CENTRIC SEARCH LTD

Executive Summary

Centric Search Ltd is a micro-entity start-up with negative net assets and working capital deficits, reflecting weak financial strength and high credit risk. The company currently lacks operational scale and sufficient cash reserves to meet short-term obligations, making credit approval unsuitable at this time. Close monitoring of cash flow, revenue development, and funding support is essential before reconsidering credit facilities.

CENTRIC SEARCH LTD - Analysis Report

Company Number: 14774341

Analysis Date: 2025-07-29 21:00 UTC

1. Credit Opinion: DECLINE
   Centric Search Ltd is a newly incorporated micro-entity with a very limited financial history. The latest financials show net liabilities of £3,091 and negative net current assets, indicating an immediate working capital deficiency. The company has no employees and minimal current assets, suggesting limited operational scale and cash reserves to meet short-term liabilities. There is no evidence of profitability or positive cash flow to support debt servicing. Given the negative equity position and absence of financial buffers, the company presents a high credit risk at this stage.

2. Financial Strength:
   The balance sheet reveals total current assets of £1,172 against current liabilities of £4,263, resulting in net current liabilities of £3,091. No fixed assets or other long-term assets are reported. Shareholders’ funds are negative, reflecting accumulated losses or initial capital injection shortfall. As a micro-entity in its first year, this negative net asset position and lack of tangible assets highlight weak financial strength and limited capacity to absorb financial shocks.

3. Cash Flow Assessment:
   The company has minimal liquid resources and no reported income or cash flow from operations. The absence of employees and negligible current assets imply low business activity or a start-up phase without revenue generation. Negative working capital means the company may struggle to meet immediate creditors without external funding or shareholder support. Cash flow risk is elevated without evidence of incoming cash or committed financing lines.

4. Monitoring Points:

• Monthly cash flow and liquidity position
• Progress in generating revenue and profitability
• Changes in working capital and creditor payment terms
• Any capital injections or shareholder funding to improve net assets
• Director’s plans for scaling operations and managing financial risk