INSIGHT AND DESIGN GROUP LIMITED

Executive Summary

Insight and Design Group Limited exhibits a significant deterioration in liquidity and solvency over the latest financial year, with net assets and working capital nearly depleted. While regulatory compliance and operational stability in staffing are maintained, the financial position raises serious concerns about the company’s ability to meet obligations and sustain operations without corrective action. Further investigation into cash flows, creditor composition, and operational performance is advised to fully assess risk exposure.

INSIGHT AND DESIGN GROUP LIMITED - Analysis Report

Company Number: 14253262

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: HIGH
   The company’s solvency and liquidity position has deteriorated significantly over the last financial year, with net current assets dropping from £131,176 to just £79. This sharp decline poses a material risk to the company’s ability to meet its short-term obligations.

2. Key Concerns:

• Severe Liquidity Depletion: Current liabilities have doubled from £84,227 to £171,338 while current assets decreased from £215,403 to £171,417, resulting in negligible net working capital. This indicates potential cash flow stress or over-reliance on short-term creditor financing.
• Erosion of Equity: Shareholders’ funds have declined dramatically from £131,176 to £79, suggesting significant losses or capital withdrawals. This weakens the company’s financial buffer against operational risks.
• Unsecured Director Loans: The directors’ loan account is modest but remains unsecured, repayable on demand, and interest-free, which may indicate informal financing arrangements rather than stable capital structure.

3. Positive Indicators:

• Compliance and Timely Filing: The company is current on its accounts and confirmation statement filings with no overdue returns, reflecting good regulatory compliance.
• Stable Employment: The average number of employees remained stable at 3, indicating operational continuity.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the reasons behind the drastic reduction in net current assets and shareholders’ funds, including detailed profit and loss data to assess operational performance and any extraordinary items.
• Review cash flow statements (if available) to understand cash generation and usage patterns over the last year.
• Confirm the nature of creditor balances contributing to the high current liabilities and assess any potential supplier or creditor disputes or payment delays.
• Clarify the company’s business model and client base to evaluate sustainability of revenue streams in the context of the financial decline.
• Assess the directors’ intentions and plans to restore financial stability, including any capital injections or restructuring measures planned or underway.