Company Number: 13452438

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: DECLINE
   Envoyo Limited shows significant and worsening negative net assets and working capital deficits over the last four years. The company’s current liabilities substantially exceed its current assets, indicating a material liquidity risk and inability to meet short-term obligations from operating cash flows. The negative shareholders’ funds and accumulated losses suggest sustained losses without evident recovery. While directors affirm going concern status, the financials indicate a fragile position that undermines creditworthiness for lending or extended payment terms without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet reveals consistent negative net assets: -£207,950 at 31/12/2023, deteriorating over prior years. Fixed assets are modest (£22k) and primarily intangible (software) with some tangible equipment. Current liabilities are large (£326k) compared to current assets (£96k), resulting in a negative net current asset position of -£230k. The company has no substantive equity buffer, with accumulated losses reflected in shareholders’ funds of -£247k. This indicates weak capitalisation and a high risk of insolvency absent external support.

3. Cash Flow Assessment:
   Cash on hand is minimal (£5.1k), and trade debtors are unusually high (£1.4k) compared to other debtors (£57.7k) with a large portion owed by group undertakings. The company appears reliant on intra-group funding rather than operating cash flows. The large current liabilities, predominantly other creditors (£285k), suggest significant short-term payment obligations that are unlikely to be met from current liquid resources. Working capital management is poor and liquidity risk is high.

4. Monitoring Points:

• Monitor improvements or further deterioration in net current assets and net liabilities.
• Track operational cash flow generation and reliance on related party funding.
• Review any changes in creditor payment terms or supplier support.
• Watch for director or shareholder capital injections or restructuring plans.
• Assess future profitability and turnover trends to gauge if losses are being reversed.