Company Number: 13917894

Analysis Date: 2025-07-29 18:45 UTC

1. Credit Opinion: DECLINE
   IL Components Ltd shows persistent negative net assets and net current liabilities, indicating an ongoing capital deficiency. The company has no current assets reported in the latest year and increasing short-term liabilities, reflecting poor liquidity to meet immediate obligations. The absence of profits or cash reserves raises significant concerns about its ability to service debt or sustain operations without additional capital injection. Given these financial weaknesses and lack of evidence of a turnaround, credit exposure would be high risk.

2. Financial Strength:
   The company's balance sheet reveals deteriorating financial health over the last two years. Net liabilities increased from £6,390 in 2023 to £8,755 in 2024, with current liabilities surpassing current assets and zero reported current assets by 2024. Shareholders’ funds remain negative, which suggests ongoing losses or capital withdrawal. The company is categorized as a micro-entity with minimal asset base and no fixed assets disclosed, limiting collateral value.

3. Cash Flow Assessment:
   Cash availability is critically low, with only £307 cash reported in 2023 and none in 2024. Negative net current assets imply insufficient working capital to cover short-term debts. There is no indication of positive cash flows or retained earnings to support operational liquidity. The company’s ability to meet immediate financial commitments or absorb shocks is weak, increasing default risk.

4. Monitoring Points:

• Monitor quarterly management accounts for cash flow improvements or capital infusion.
• Track creditor payment patterns and supplier feedback for signs of distress.
• Review any changes in shareholder funding or director loans to support liquidity.
• Watch for overdue filing deadlines or director changes that may reflect operational instability.
• Assess business model viability given the multiple SIC codes but negligible financial progress.