Company Number: NI668240

Analysis Date: 2025-07-29 12:08 UTC

1. Credit Opinion: DECLINE. IC BOOKS LTD shows persistent net liabilities and negative working capital over the last three financial years, culminating in a significant deterioration in the latest year (2024) with net current liabilities of £6,900 and total net liabilities of the same amount. The absence of employees and minimal current assets (£526) further weaken operational capacity. The company’s financial position indicates it is unlikely to meet debt obligations reliably.

2. Financial Strength: The company operates as a micro-entity with minimal share capital (£1) and consistently negative shareholders’ funds, worsening from -£50 in 2023 to -£6,900 in 2024. Fixed assets are not reported, and total assets consist solely of current assets, which have dramatically declined in the latest year. The balance sheet reveals poor financial health, with liabilities exceeding assets and no buffer to absorb financial shocks.

3. Cash Flow Assessment: Cash and current assets have decreased sharply from £13,663 in 2023 to only £526 in 2024, while current liabilities have dropped but remain high relative to assets. Negative net current assets indicate working capital shortages, implying liquidity stress. The company likely lacks sufficient cash flow to cover short-term obligations, increasing risk of default on any credit facility.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios closely.
• Monitor any increase in cash reserves or equity injections to improve solvency.
• Observe payment patterns to suppliers and creditors for signs of delayed payments.
• Review any strategic plans or management actions addressing financial distress.
• Confirm continuation of director oversight and compliance with filing deadlines.