Company Number: 12949156

Analysis Date: 2025-07-20 15:47 UTC

Credit Opinion:
DECLINE. Gravity Data Ltd exhibits significant financial distress, with worsening net liabilities and negative shareholders’ funds. The company’s ability to meet short-term obligations is weak, underscored by negative net current assets and a substantial increase in current liabilities. The reliance on intra-group loans without interest raises concerns about sustainable cash flow and financial independence. The absence of employees and ongoing losses further impair confidence in repayment capacity.

Financial Strength:
The balance sheet reflects fragile financial health. Net assets declined sharply to -£105,820 (down from -£28,773 in the prior year), driven by an increase in creditors falling due after more than one year (£104,168) and current liabilities. Shareholders’ funds are deeply negative at -£773,274, indicating accumulated losses. Fixed assets and intangible assets are minimal and do not offset liabilities. The company’s capital structure is heavily leveraged with minimal equity buffer and no apparent profitability or retained earnings to support growth or debt servicing.

Cash Flow Assessment:
Liquidity is strained despite holding cash of £8,720, as current liabilities exceed current assets, resulting in negative working capital of £-1,798. The company’s cash position has more than halved from the previous year (£16,949), indicating cash burn. Debtor balances are modest and insufficient to cover liabilities. The reliance on a loan from the parent company (5X PTE Ltd) to fund operations, with minimal repayments and no interest charges, signals dependency and potential cash flow vulnerability should the parent withdraw support.

Monitoring Points:

• Movement in current liabilities and creditor terms, particularly the large amounts due after one year.
• Cash flow trends and any further reliance on related party loans.
• Progress towards achieving positive profitability and rebuilding shareholders’ equity.
• Timely filing of accounts and confirmation statements to assess ongoing compliance and financial transparency.
• Management’s strategy to reduce losses and improve liquidity.