IDEATION ENTERPRISES LIMITED
Company number 08167604 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: IDEATION ENTERPRISES LIMITED
1. Credit Opinion: DECLINE
This application must be declined. The company presents multiple disqualifying factors that render it unsuitable for any credit facility:
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Active Proposal to Strike Off: The company is under a proposal to be removed from the Companies House register. This indicates the entity is being wound up and may cease to exist imminently. Extending credit to a company facing dissolution is fundamentally imprudent.
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Balance Sheet Insolvency: Net assets have been negative since 2018, currently standing at -£9,837. The company has been technically insolvent for six consecutive years with no realistic path to recovery given the minimal asset base.
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No Operational Substance: Zero employees, negligible assets, and no discernible trading activity suggest this is effectively a shell entity with no capacity to generate revenue or service debt.
2. Financial Strength: Critically Weak
| Year | Net Assets | Trajectory |
|---|---|---|
| 2016 | £1,071 | Last positive year |
| 2017 | £234 | Near-zero |
| 2018 | -£8,543 | Insolvent |
| 2019 | -£9,566 | Worsening |
| 2020 | -£11,573 | Deteriorating |
| 2021 | -£13,898 | Deteriorating |
| 2022 | -£14,906 | Deteriorating |
| 2023 | -£15,604 | Peak deficit |
| 2024 | -£9,837 | Marginal improvement |
Key Observations:
- Share capital of only £100 with accumulated losses of nearly £10,000 demonstrates complete erosion of any original investment.
- Total assets of just £3,546 (down from £72,384 in 2016) represent a 95% decline over eight years. The asset base has been systematically run down.
- Long-term creditors of £12,947 (likely director or related-party loans) dominate the liabilities and exceed total assets by a significant margin.
- The slight improvement in 2024 (net liabilities reduced from £15,604 to £9,837) appears to reflect debt write-offs or reclassification rather than operational improvement—long-term creditors dropped from £22,233 to £12,947, suggesting approximately £9,000 of debt was forgiven or restructured, not earned.
3. Cash Flow Assessment: Inadequate
- Current assets of £3,546 against current liabilities of only £244 produces a superficially healthy current ratio of approximately 14.5x. However, this is misleading—the current assets are minimal in absolute terms and the real obligations sit in long-term creditors.
- No revenue or profit and loss data is available (micro-entity filing exemptions), making it impossible to assess trading viability or cash generation capacity.
- No employees means no payroll obligations, but also no operational capability to generate income.
- Cash position unknown for recent years; the last reported cash balances (2016: £535, 2017: £2,277) were negligible.
The company has no visible means of generating cash flow to service any debt facility.
4. Monitoring Points
If any exposure already exists, the following should be monitored urgently:
| Metric | Current Status | Risk Level |
|---|---|---|
| Strike-off status | Active proposal | 🔴 Critical |
| Confirmation statement | Overdue | 🔴 Critical |
| Net assets | -£9,837 | 🔴 Critical |
| Total assets trend | £3,546 (declining) | 🔴 High |
| Long-term creditor balance | £12,947 (exceeds assets) | 🔴 High |
| Employee count | Zero | 🟡 Moderate |
Immediate Actions Required: - Confirm strike-off status with Companies House—credit should not be extended to a company being dissolved - If existing exposure exists, consider demanding immediate repayment or securing against available assets - Monitor for completion of strike-off, at which point debt recovery becomes significantly more difficult