CHANGEXPHERE LIMITED

Executive Summary

Changexphere Limited exhibits persistent negative net assets and working capital deficits, signaling weak financial health and limited ability to service debt. The company shows no operational growth or cash flow generation, warranting a decline recommendation for credit facilities. Close monitoring of liquidity improvements and capital injections is advisable if reconsideration is needed.

CHANGEXPHERE LIMITED - Analysis Report

Company Number: 13550508

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: DECLINE
   Changexphere Limited presents a weak credit profile due to persistent negative net assets (£-801) and net current liabilities (£-5,801), indicating an inability to cover short-term obligations from current assets. The company’s financials have not improved over the last four years, showing no growth or operational progression. The absence of employees and minimal fixed assets (£5,000) suggest limited business activity or scale, raising concerns about cash generation and debt servicing capability.

2. Financial Strength:
   The balance sheet shows negative net assets and net current assets, meaning liabilities exceed assets. This is a significant weakness, especially for a micro-entity, as it signals undercapitalization and potential insolvency risk. The company has not generated reserves or profits to improve equity, maintaining the same negative position across multiple years. The shareholder’s funds consist solely of a deficit, with no retained earnings or additional capital injections evident.

3. Cash Flow Assessment:
   Current assets of £763 are insufficient against current liabilities of £6,564, indicating severe liquidity constraints. The company’s working capital position is negative by £5,801, implying it cannot meet short-term obligations without external funding. No employees and minimal current assets suggest limited operational cash flow, increasing reliance on director funding or external credit.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities to identify any improvement in liquidity.
• Watch for any capital injections or shareholder loans that may strengthen the balance sheet.
• Track filing of updated accounts and confirmation statements to ensure compliance and transparency.
• Observe any changes in business activity or scale, including employee count or asset acquisitions, which may impact credit risk.