Credit Analysis: EXPERIENCE (INTERNATIONAL) LIMITED

Companies House: 05205331

1. Credit Opinion: DECLINE

This company presents unacceptable credit risk for any meaningful facility. The business has contracted from total assets of £607k (2019) to just £45k — a 93% decline — and currently operates with zero employees and no visible revenue generation. The balance sheet lacks substance, with net assets of only £34k and minimal liquidity. A prior period of technical insolvency (2016-2018, negative net assets) further undermines confidence. The company appears to be operating as a near-dormant shell rather than a trading entity with capacity to service debt.

2. Financial Strength: Weak

Balance Sheet Summary (FY2025):

Key Concerns:

• Minimal capital base: Share capital of only £102. The P&L reserve of £34,156 represents virtually all equity, offering no buffer against losses.
• Declining net assets: The £1,947 erosion in shareholders' funds indicates the company ran at a loss during FY2025, consistent with a non-trading shell incurring maintenance costs.
• Historical insolvency: Net assets were negative in 2016 (£-29,788), 2017 (£-46,936), and 2018 (£-137,037). While subsequently restored, this demonstrates a pattern of financial distress.
• Dramatic scale reduction: Total assets fell from £713k (2017) to £45k (2025). This is not a stable business but one that has been run down significantly.

Asset Quality:

Current assets comprise £37,983 in debtors and £7,007 cash. Fixed assets are fully depreciated (computer equipment at £0 net book value). The debtors balance represents 84% of total assets — concentration risk is extreme. Without visibility into who owes this money or its recoverability, this is a significant concern.

3. Cash Flow Assessment: Inadequate

Liquidity Position:

While the current ratio appears healthy, this is misleading. The company has:

• No revenue stream: Zero employees and no P&L visibility suggests minimal or no trading income.
• Creditor profile: Liabilities consist of VAT (£6,010) and accruals/deferred income (£4,722). No trade creditors suggests no operational purchasing activity.
• Cash improvement is marginal: Cash increased by £3,855, but this likely reflects debtors collection rather than trading income.
• No debt service capacity: Without identifiable revenue, the company cannot demonstrate ability to service new borrowings from operational cash flow.

Working Capital Concern:

The debtors balance (£37,983) is the critical asset. If this proves partially or wholly irrecoverable, net assets would be severely impaired. Given the company's apparent dormant status, these may be inter-company or related-party balances requiring closer scrutiny.

4. Monitoring Points

If any facility were ever considered (which cannot be recommended currently), the following would require ongoing vigilance:

1. Debtors composition and recoverability: Request full aged debtor analysis. Determine if balances are related-party. Assess collectibility of the £37,983 outstanding.

2. VAT liability: £6,010 owed to HMRC. Monitor for timely payment — Crown debt priority status means arrears could trigger enforcement.

3. Trading status confirmation: Obtain confirmation of whether the company is actively trading or dormant. If trading, request full P&L to assess revenue and profitability.

4. Director intentions: Given the dramatic scale reduction, understand whether directors plan to wind down, revive trading, or maintain the current status quo.

5. Related party transactions: Given zero employees and the business support services SIC code, investigate whether the company exists primarily to service group or director-related activities.

6. Filing compliance: Currently up to date, but monitor for any deterioration in filing timeliness, which could signal governance issues.

7. Any return to active trading: A significant change in scale, employee count, or revenue would warrant a complete reassessment.