IB2 LOGISTICS LTD

Executive Summary

IB2 LOGISTICS LTD displays high solvency risk due to significant negative working capital and heavy reliance on director loans to meet liabilities. While regulatory compliance is maintained and tangible assets exist, the company’s limited cash reserves and low equity base raise concerns about short-term financial stability. Further investigation into cash flow dynamics and director financing arrangements is recommended to fully assess operational viability.

IB2 LOGISTICS LTD - Analysis Report

Company Number: 13976736

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity strain with net current liabilities substantially exceeding cash reserves, minimal shareholder funds, and reliance on director loans. The negative working capital position raises concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Cash at hand (£386) is insufficient relative to current liabilities (£7,206), resulting in negative net current assets (-£6,820), indicating an inability to cover short-term debts without additional financing.
• Reliance on Director Loans: A substantial portion (£4,783) of current liabilities consists of loans from directors, which may indicate cash flow dependency on insiders rather than operating cash generation.
• Minimal Capital Base and Profit Retention: Shareholders’ funds remain low (£1,041) with no indication of retained earnings growth or profitability, limiting the company’s financial buffer against operational risks.

3. Positive Indicators:

• Compliance and Reporting: The company is current on statutory filings with no overdue accounts or confirmation statements, reflecting sound governance in terms of regulatory obligations.
• Fixed Asset Base: Tangible assets (motor vehicles) of £7,861 provide some asset backing, which may be leveraged or sold if necessary.
• Active Status with Clear Ownership: The company is active, with a transparent shareholder structure evenly split between two directors who have control and voting rights, facilitating decisive management.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess repayment schedules, interest rates, and dependency on these funds for ongoing operations.
• Review cash flow statements and operating performance to determine if liquidity issues stem from operational inefficiencies or timing mismatches.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in current accounts.
• Verify any potential risks related to the recent resignation and reappointment of Director Ivo Badev within 2024, ensuring no governance or operational disruptions.
• Examine the business model and contracts underpinning freight and transportation services for sustainability and revenue consistency.