GEOSPATIAL INTELLIGENCE LTD

Executive Summary

Geospatial Intelligence Ltd is currently facing significant solvency challenges, highlighted by a deteriorating net asset position and substantial long-term liabilities. While short-term liquidity has improved and regulatory filings are up to date, the company remains reliant on financial support from its parent entity, indicating heightened risk for standalone sustainability. Further due diligence into related party loans and profitability outlook is warranted before considering investment.

GEOSPATIAL INTELLIGENCE LTD - Analysis Report

Company Number: 13233163

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by substantial net liabilities (£104,423 negative shareholders' funds) and a large amount of long-term creditors (£127,786) relative to current assets (£31,148). Despite some improvement in net current assets, the overall negative equity position and reliance on related party support indicate elevated financial risk.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities increased markedly from £27,593 negative in 2023 to £104,423 negative in 2024, signaling ongoing losses and erosion of equity.
• Substantial Long-Term Creditors: £127,786 of creditors due after one year likely represent related party loans or deferred liabilities, raising questions about the company’s ability to service debt without external support.
• Reliance on Parent Company Support: The director’s note confirms a financial support commitment from the associated Australian parent entity. This dependency suggests the company is not currently self-sustaining.

3. Positive Indicators:

• Improved Net Current Assets: From negative £27,593 in 2023 to positive £23,363 in 2024, indicating better short-term liquidity management.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance in terms of statutory obligations.
• Active Status with a Single Director: The company is active with a consistent director since incorporation, which may support operational continuity.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term creditors (£127,786), particularly whether these are related party loans and the repayment schedule.
• Review detailed profit and loss information (not filed due to small company exemptions) to understand the drivers of losses and future profitability prospects.
• Investigate the extent and enforceability of the parent company’s financial support commitment.
• Assess the company’s cash flow forecasts and working capital cycle to verify liquidity assumptions.
• Confirm if there are any contingent liabilities or pending legal issues not disclosed in the accounts.