INREVERSE LTD

Executive Summary

Inreverse Ltd is a newly established small design company with a sound initial liquidity position and positive working capital. Despite limited trading history, current financial indicators support a conditional credit approval, subject to monitoring of future operational performance and cash flow sustainability. The company's modest scale and single-director structure warrant careful ongoing oversight.

INREVERSE LTD - Analysis Report

Company Number: SC785280

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: APPROVE with conditions. Inreverse Ltd is a newly incorporated private limited company (incorporated October 2023) operating in specialised design activities. The company shows a positive net current asset position and modest cash resources relative to current liabilities, indicating initial liquidity and working capital adequacy. However, as it has only one financial period completed, with limited operating history and no income statement disclosed, caution is warranted. Approval is recommended with conditions including ongoing monitoring of trading performance and cash flow generation to ensure sustainable debt servicing capability.

2. Financial Strength: The balance sheet as of 30 September 2024 shows total current assets of £44,160 (all cash) against current liabilities of £17,835, resulting in net current assets of £26,325. Total net assets and shareholders' funds equal £26,325, reflecting initial equity plus retained earnings (likely accumulated losses or minimal profits given the short trading period). The company has no fixed assets, indicating limited capital investment so far. The capital structure is very modest with a nominal share capital of £1. Overall, the financial position is stable but very small in scale, typical for a start-up phase entity.

3. Cash Flow Assessment: Cash at bank of £44,160 provides a reasonable liquidity buffer against short-term liabilities of £17,835, giving a current ratio of approximately 2.5x. This implies the company can meet its short-term obligations comfortably as of the latest accounts date. However, absence of detailed cash flow statements and profit & loss figures limits deeper analysis. The company’s working capital appears sufficient for current operations, but future cash flow management will be crucial, especially as trading activities expand.

4. Monitoring Points:

• Subsequent trading results and cash flow generation to confirm ongoing viability.
• Timely filing of future accounts and confirmation statements to assess ongoing compliance and operational status.
• Changes in current liabilities, particularly taxation and social security obligations, to monitor potential cash flow strain.
• Growth in turnover, profitability, and asset base to evaluate financial trajectory.
• Management’s financial stewardship as the sole director and PSC; any changes in ownership or directorship could impact governance.