Company Number: 13786447

Analysis Date: 2025-07-20 16:38 UTC

1. Credit Opinion: DECLINE
   Enable Services Group Limited shows significant financial weakness with persistent and growing net liabilities and negative net current assets. The company's net liabilities increased from -£171k in 2023 to -£270k in 2024, indicating worsening financial health. Current liabilities exceed current assets by £198k, exposing liquidity risk. The company has a high level of debt due within one year (£498k), with only £20k cash available. This suggests poor capacity to meet short-term obligations and service additional credit without immediate financial distress. The negative working capital and net asset position raise concerns about going concern viability despite director assertions. The company is relatively new (incorporated in late 2021) and still building its business, but the financial trajectory is negative. Directors have changed recently, showing potential management instability. No audit has been conducted, limiting transparency. Overall, lending new credit facilities would be high risk without substantial credit enhancement or guarantees.

2. Financial Strength:

• Fixed assets stable at ~£36k, mostly tangible assets.
• Current assets increased to £300k primarily due to debtors (£280k), but this is offset by very high current liabilities of £498k.
• Net current liabilities of £198k signify a working capital deficit.
• Total net liabilities grew to £270k, reflecting accumulated losses or funding shortfall.
• Shareholders’ funds are negative, at -£270k, indicating that the company’s liabilities exceed its assets.
• The company carries £100k non-current debt, limiting financial flexibility.
  The balance sheet reflects a weak capital structure, poor financial resilience, and reliance on creditor funding.

3. Cash Flow Assessment:

• Cash on hand is low (£20k) relative to current liabilities (£498k).
• High trade debtors (£280k) may indicate collection risks or extended credit terms.
• Negative net current assets suggest the company depends on rolling short-term liabilities to fund operations.
• The increase in cash from £7k to £20k is positive but insufficient given liabilities.
• Operating lease commitments of £22k per annum add fixed cash outflows.
• No profit and loss details are available, but the accumulated losses imply ongoing operating losses or insufficient profits to build reserves.
  Liquidity is constrained, and the company’s ability to generate positive cash flow to service debt is unproven.

4. Monitoring Points:

• Improvement in net current assets and reduction in current liabilities.
• Collection period on debtors and ageing analysis to ensure timely cash inflows.
• Profitability trends once P&L data is available to assess operating margin and cash generation.
• Changes in director or ownership structure that may impact business strategy or financial management.
• Any additional capital injections or refinancing to improve net asset position.
• Compliance with filing deadlines and transparency in financial reporting.
• The company’s ability to convert receivables to cash promptly.