ICL RESOURCES LTD

Executive Summary

ICL Resources Ltd is a micro private company with a positive net asset base but experiencing liquidity challenges due to a significant increase in short-term liabilities leading to negative net current assets. While compliance with filings is up to date and equity remains positive, the reliance on director loans and deteriorating working capital warrants closer examination of cash flow and creditor management. Overall, the company presents a medium risk profile primarily driven by liquidity concerns rather than solvency or governance issues.

ICL RESOURCES LTD - Analysis Report

Company Number: SC688251

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: MEDIUM
   ICL Resources Ltd shows a mixed financial position with declining liquidity and increasing short-term liabilities, which raises concerns over near-term solvency despite positive net assets.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£78,431) exceed current assets (£41,174) by £36,208 as of February 2024, indicating potential liquidity stress to meet short-term obligations.
• Rising Short-Term Creditors: Creditors due within one year increased substantially from £18,956 in 2023 to £78,431 in 2024, suggesting increased reliance on short-term financing or delayed payments.
• Director Loans on Balance Sheet: The presence of unsecured, interest-free director loans (approx. £9,912 total outstanding) could indicate cash flow support dependency, which may pose risk if directors cannot repay or choose to withdraw support.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company’s net assets increased from £27,935 in 2023 to £31,464 in 2024, indicating an overall positive equity position and no immediate solvency threat.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, showing good compliance and governance discipline.
• Stable Workforce: The company maintains a small, stable workforce (2 employees), consistent with its micro-entity classification, which can aid in cost control.

4. Due Diligence Notes:

• Review the company’s cash flow statements and creditor aging to assess the cause of rising current liabilities and negative working capital.
• Investigate the terms and recoverability of director loans and whether there is any risk of their withdrawal or impact on the company’s liquidity.
• Obtain management commentary on plans to improve liquidity, including any refinancing, creditor negotiations, or operational adjustments.
• Consider verifying whether there are any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.
• Confirm no director disqualifications or compliance breaches beyond the information provided.