COMPILE-Q LTD

Executive Summary

COMPILE-Q LTD is a newly incorporated micro-entity with a negative net asset position and working capital deficit, indicating weak financial health and liquidity constraints. The company’s limited trading history and fragile balance sheet suggest a high risk of credit default, leading to a recommendation to decline credit facilities at this stage. Close monitoring of future financial filings and business performance is essential to reassess creditworthiness.

COMPILE-Q LTD - Analysis Report

Company Number: 14480661

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion: DECLINE
   COMPILE-Q LTD's latest financials reveal a negative net asset position of £3,167 and net current liabilities of £4,292, indicating that current liabilities exceed current assets. This weak balance sheet signals limited ability to meet short-term obligations from available liquid assets. The company is young, incorporated in late 2022, and has just filed its first micro-entity accounts. Given the negative equity and working capital deficit, the company currently lacks financial strength to reliably service debt or credit lines. Without evidence of committed cash inflows or external support, extending credit would be high risk.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£1,125) and current assets (£1,294), but significant current liabilities (£5,586). This results in net current liabilities and negative shareholders’ funds (£3,167), reflecting erosion of capital and potential insolvency risk if the position worsens. The micro-entity status limits disclosure detail, but the financial position is fragile. The company’s small scale and short trading history provide limited assurance.

3. Cash Flow Assessment:
   Net current liabilities highlight liquidity challenges, with working capital insufficient to cover creditors due within one year. Cash or equivalents are not separately disclosed but are likely included within current assets at a low level. With four employees, operational cash burn may further strain liquidity unless supplemented by equity injections or revenues. No information on cash flows or profitability was provided, which is typical for a micro entity but increases uncertainty.

4. Monitoring Points:

• Improvement in net current assets to positive territory
• Trends in revenue growth and profitability once available
• Equity injections or capital restructuring to shore up net assets
• Timely filing of subsequent accounts and confirmation statements
• Director and shareholder changes that may affect control or financial support