IMAGENETWORK LIMITED

Executive Summary

Imagenetwork Limited exhibits significant liquidity concerns with negative net current assets and eroding equity as of its latest accounts. The company's micro scale, single-director control, and declining financial position suggest elevated credit risk. Credit extension is not advisable without strong mitigating conditions and close monitoring of liquidity and operational performance.

IMAGENETWORK LIMITED - Analysis Report

Company Number: 12892645

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: DECLINE
   Imagenetwork Limited's financials reveal a deteriorating liquidity position with current liabilities significantly exceeding current assets as of 30 September 2024, resulting in negative net current assets of £2,715. This is a marked decline from previous years where net current assets were positive, indicating worsening short-term financial stress and potential difficulties in meeting immediate obligations. The company operates in a niche repair sector with a single director and shareholder, which may constrain operational resilience. The absence of an audit and limited financial disclosures further reduce transparency. Given the negative working capital and shrinking asset coverage against liabilities, extending credit without stringent conditions is risky.

2. Financial Strength:
   The company’s balance sheet shows fixed assets at £1,500 consistently, but current assets have plunged from £1,509 in 2023 to just £250 in 2024, while current liabilities increased to £2,965. This shift has moved net assets from a modest positive £1,244 in 2023 to a negative £1,215 in 2024, indicating erosion of equity and potential insolvency risk. Shareholders’ funds mirror this decline. The micro-entity size classification indicates limited scale, and with only one employee and a sole controlling director, the business lacks diversification in capital and governance.

3. Cash Flow Assessment:
   The significant increase in current liabilities alongside a drop in current assets implies the company is likely experiencing cash flow constraints. Negative net current assets mean the company may struggle to cover short-term debts as they become due. Without detailed cash flow statements, this assessment relies on balance sheet proxies, but the trend signals liquidity risk. The company should be monitored closely for any overdue payments or supplier disputes.

4. Monitoring Points:

• Track quarterly or interim financial updates focusing on current assets vs. liabilities to detect any further deterioration in liquidity.
• Monitor payment history with suppliers and creditors for signs of late settlements or defaults.
• Review any changes in director or ownership structure that might affect management quality or capital injection.
• Watch for filings compliance to avoid any regulatory or legal penalties that may impact financial stability.
• Consider the impact of sector-specific risks in consumer electronics repair, including competition and technological obsolescence.