CYBER GADGETS LIMITED

Executive Summary

Cyber Gadgets Limited has experienced a significant decline in financial health over the last year, moving from positive net assets to a net liability position with negative working capital. This raises concerns about its ability to service debts and sustain operations without external support. Credit approval is not recommended at this stage due to elevated risk and limited financial resilience.

CYBER GADGETS LIMITED - Analysis Report

Company Number: 13118679

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: DECLINE
   Cyber Gadgets Limited currently presents a concerning credit profile. The latest financial year shows a net liability position (£-2,259), a marked deterioration from prior years when the company reported positive net assets (£2,205 in 2023 and £3,892 in 2021). This sharp decline signals potential financial distress and questions the company's ability to meet its debt obligations and ongoing liabilities. The small scale of operations (micro-entity) and minimal share capital (£1) further constrain its financial resilience. Given these factors, extending credit would carry elevated risk without additional mitigating information or guarantees.

2. Financial Strength:
   The balance sheet reveals a weakening financial position. Fixed assets are minimal (£1,088), and net current liabilities (£-3,346) indicate working capital deficiency. The loss of net assets from £2,206 in 2023 to a deficit reflects accumulated losses or write-downs during the year. The company’s capital and reserves have slipped into negative territory, highlighting erosion of shareholder funds. This weak equity base limits the company’s buffer against operational or market shocks.

3. Cash Flow Assessment:
   Current liabilities (£17,103) exceed current assets plus prepayments (£13,756), resulting in negative net current assets. This denotes strained liquidity and potential cash flow pressures to cover short-term obligations. The lack of significant cash reserves and reliance on creditor funding could impair day-to-day operations and repayment capacity. Absence of detailed cash flow statements limits a full assessment, but the working capital metrics suggest limited financial flexibility.

4. Monitoring Points:

• Net asset trends: Watch for further erosion or recovery in equity.
• Working capital position: Monitor improvements or deterioration in current assets vs liabilities.
• Profitability indicators: Absence of P&L data is a concern; future filings should be reviewed for profit or loss trends.
• Director’s conduct and control: No adverse records noted; ownership concentration remains with the sole director, which centralizes decision-making risk.
• Filing compliance: Remains current, which is positive for transparency and monitoring.