INFLUX DIGITAL SOLUTIONS LIMITED

Executive Summary

Influx Digital Solutions Limited is currently in a precarious financial position, with negative net assets and working capital deficits indicating poor ability to meet short-term and long-term obligations. The company’s small scale and limited financial resources raise concerns about its creditworthiness and resilience. Without signs of capital support or improved cash flow, credit exposure would be considered high risk and is not recommended.

INFLUX DIGITAL SOLUTIONS LIMITED - Analysis Report

Company Number: 14249072

Analysis Date: 2025-07-29 18:36 UTC

1. Credit Opinion: DECLINE
   Influx Digital Solutions Limited shows a weak financial position with negative net assets (£-5,424 as at 31 July 2024) and negative net current assets (£-93). The company’s liabilities exceed its assets, indicating insufficient financial strength to meet obligations. The persistent negative equity and current liabilities exceeding current assets raise concerns about the company’s ability to service debt or absorb financial shocks. Given the minimal asset base, micro-entity scale, and no audit, the company’s financial stewardship and resilience appear limited. Without clear evidence of improving cash flows or capital injection, extending credit would present a high risk.

2. Financial Strength:
   The company is categorized as micro-entity but has deteriorated from a minor positive net asset position in prior years to a negative net asset position in the latest accounts. Total liabilities now exceed total assets, including short-term creditors of £2,520 and longer-term creditors of £5,331. The equity base is negative, reflecting accumulated losses or shareholder withdrawals not supported by retained earnings or fixed assets. This weak balance sheet suggests limited capacity to absorb losses or invest in growth.

3. Cash Flow Assessment:
   Current assets have fallen significantly from £5,309 in 2023 to £2,427 in 2024, while current liabilities remain high at £5,331, indicating working capital deficiency. The available cash or liquid assets appear insufficient to cover short-term debts. The company employs one employee, likely incurring ongoing payroll costs without clear revenue scale. This liquidity mismatch highlights potential difficulties in meeting immediate payment obligations and operational expenses.

4. Monitoring Points:

• Net current assets and net asset trends in subsequent filings
• Cash flow statements or management accounts showing operational cash inflows
• Any capital injections, loans, or shareholder advances to improve solvency
• Director’s commentary or strategic plans addressing financial deficits
• Timely filing of accounts and confirmation statements to ensure compliance