EDGE PI LIMITED

Executive Summary

Edge PI Limited is experiencing significant financial distress with persistent negative net assets and severe liquidity shortfalls. The company’s current financial profile does not support credit extension due to high risk of default. Close monitoring of liquidity, capital structure, and operational performance is essential if credit support is reconsidered in future.

EDGE PI LIMITED - Analysis Report

Company Number: 13260424

Analysis Date: 2025-07-20 17:39 UTC

1. Credit Opinion: DECLINE
   Edge PI Limited exhibits significant financial distress as evidenced by persistent net liabilities and negative shareholders' funds over the last three years. The company's net current liabilities have worsened dramatically from -£2,294 in 2023 to -£80,265 in 2024, indicating severe short-term liquidity issues. There is no evidence of profitability or positive cash flows to support debt servicing, making the risk of default high. The micro-entity status and minimal equity capital (£100 share capital) further constrain financial flexibility. Without a clear turnaround plan or additional capital injection, extending credit is not advisable.

2. Financial Strength:
   The balance sheet shows an alarming decline. Fixed assets increased to £80,000 in 2024 from zero the prior year, but this has not translated into improved liquidity or net asset position. Current assets plummeted from £82,891 to £4,381 while current liabilities remain roughly stable around £85,000, leading to a net current liability position of -£80,265. Net assets are negative £955 in 2024, a slight improvement from -£2,984 in 2023 but still indicative of insolvency risk. The company’s equity base is inadequate to absorb losses.

3. Cash Flow Assessment:
   The company’s working capital deficit is severe and growing, suggesting an inability to cover short-term obligations as they fall due. The drastic reduction in current assets, primarily cash or equivalents, signals liquidity strain. No information on cash flow from operations is provided, but the balance sheet trend implies negative operating cash flows or cash burn. The sole director structure with one employee may limit operational capacity and cash generation. Immediate cash flow support or restructuring would be necessary to avoid default.

4. Monitoring Points:

• Cash and equivalents levels quarterly to assess liquidity trends.
• Changes in current liabilities and whether any restructuring or settlements occur.
• Any capital injections or shareholder loans to shore up equity.
• Director’s commentary on future business plans and profitability outlook.
• Timely filing of accounts and confirmation statements to ensure transparency.