INFINITY GIFTING LTD

Executive Summary

Infinity Gifting Ltd is currently in a financially fragile state with negative net assets and worsening liquidity metrics. The company’s inability to cover short-term liabilities coupled with minimal equity and asset base presents a high credit risk. Credit facilities are not recommended until there is clear evidence of financial recovery and improved cash flow management.

INFINITY GIFTING LTD - Analysis Report

Company Number: 13030682

Analysis Date: 2025-07-20 13:02 UTC

1. Credit Opinion: DECLINE

Infinity Gifting Ltd shows a weak financial position with persistent net liabilities and negative shareholders’ funds. The company’s working capital is negative and deteriorating, indicating poor short-term liquidity and a risk of not meeting its debt obligations. Given its micro-entity status, lack of employees, minimal asset base, and ongoing losses, the business currently lacks the financial strength and operational scale to comfortably service new credit facilities. Without clear evidence of a turnaround plan or improving cash flows, extending credit would be high risk.

2. Financial Strength:

• The company’s net assets have worsened from -£616 in 2022 to -£1,693 in 2023, reflecting accumulated losses and increasing liabilities.
• Fixed assets are minimal (£800) and provide limited collateral value.
• Negative net current assets (-£1,653) show current liabilities exceed current assets by a significant margin.
• Accruals and deferred income further increase liabilities with no corresponding immediate asset.
• Share capital is nominal at £1, indicating very limited equity buffer.

3. Cash Flow Assessment:

• Negative working capital indicates ongoing cash flow pressure to meet short-term obligations.
• The absence of employees suggests limited operational activity or outsourcing, but also may reflect low revenue generation capacity.
• Without detailed cash flow statements, the worsening creditor position suggests cash outflows exceed inflows.
• No indication of external funding or capital injections to support liquidity.

4. Monitoring Points:

• Improvement in net current assets and reduction in creditor balances.
• Evidence of increased cash reserves or positive operational cash flows.
• Changes in business model or revenue streams to improve profitability.
• Director’s plans or external financing arrangements to strengthen balance sheet.
• Timely filing of accounts and confirmation statements to ensure compliance.