INSIGHTFLOW LTD

Executive Summary

INSIGHTFLOW LTD exhibits a high risk profile primarily due to sustained negative net assets and a substantial bank loan exceeding its net assets. Liquidity is constrained with minimal cash reserves relative to liabilities. While compliance filings are current and ownership is consolidated, close scrutiny of debt obligations and operational cash flow is essential to evaluate the company’s ability to remain a going concern.

INSIGHTFLOW LTD - Analysis Report

Company Number: 12851389

Analysis Date: 2025-07-29 19:53 UTC

1. Risk Rating: HIGH
   The company shows significant and persistent negative net assets and shareholder funds, indicating insolvency risk. The large long-term liabilities combined with very low cash balances relative to current liabilities raises concern about liquidity and ongoing operational viability.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £152,425 as of the latest year-end, worsening from prior years, indicating an erosion of equity and potential insolvency issues.
• Long-Term Debt Load: Bank loans of £165,000 exceed total assets less current liabilities (£12,575), demonstrating a heavy debt burden that may strain cash flows and solvency.
• Low Cash Reserves: Cash of only £1,488 against current liabilities of £165,000 and total creditors signals liquidity stress and limited ability to meet near-term obligations.

3. Positive Indicators:

• Stable Current Assets: Current assets remain roughly stable around £16,000, driven primarily by debtors and VAT/deferred tax assets.
• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, suggesting regulatory compliance is being maintained.
• Ownership Control: A single director and 75-100% shareholder control may allow for decisive management actions if needed.

4. Due Diligence Notes:

• Investigate terms and covenants of the bank loan to assess repayment schedules and any potential default risks.
• Review cash flow forecasts and debtor collections to evaluate the company’s ability to improve liquidity.
• Examine the nature of deferred tax assets and their realizability.
• Assess the company’s business model sustainability given losses and negative equity trends.
• Confirm no contingent liabilities or related party transactions that may exacerbate financial stress.