Company Number: 14721056

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: DECLINE

INHALL LTD’s latest filed micro-entity accounts as of 31 March 2024 show a negative net asset position of £3,957, indicating insolvency on a balance sheet basis. The company has current liabilities (£4,540) far exceeding its current assets (£460), resulting in a negative working capital of £4,080. This financial structure suggests the company is not currently able to meet its short-term obligations from available liquid resources. Furthermore, the company is newly incorporated (March 2023) with only two employees and limited financial history, which inhibits confidence in its creditworthiness. Given the negative equity, lack of positive net assets, and insufficient liquidity, the company poses a high risk for lending or credit extension at this time.

2. Financial Strength

The balance sheet reveals liabilities exceeding assets, with net liabilities of £3,957. Fixed assets are negligible at £123, and current assets are only £460, both insufficient to cover short-term debts of £4,540. Negative net current assets (working capital) highlight poor liquidity and financial weakness. The shareholders’ funds mirror the negative net asset position, confirming that accumulated losses or obligations have eroded capital. Without a positive equity base or cash reserves, the company’s financial strength is weak and indicates poor solvency.

3. Cash Flow Assessment

The company’s current assets are minimal relative to current liabilities, implying limited cash or receivables to fund operational needs or repay creditors. Negative working capital of £4,080 suggests ongoing cash flow difficulties. There is no indication of cash or equivalents in the accounts; therefore, the ability to generate sufficient cash to service debt or meet payment terms is doubtful. The small employee base and early stage of operations further imply limited cash inflows at this point.

4. Monitoring Points

• Monitor any updated accounts for improvement in net assets and working capital.
• Track cash generation and liquidity position closely, especially current assets vs. liabilities.
• Observe management changes or strategic plans to rectify financial weakness.
• Watch for payment performance and any overdue filings or creditor actions.
• Assess business progress beyond the first year to evaluate viability and growth prospects.