INSPIRATION INTERIORS LIMITED

Executive Summary

Inspiration Interiors Limited is a micro-scale company exhibiting marginal liquidity with persistent working capital deficits but slight recent improvement. The company’s financial position is fragile due to low equity and negative net current assets, warranting conditional credit approval with cautious exposure limits. Ongoing monitoring of liquidity metrics and operational cash flow is essential to mitigate credit risk.

INSPIRATION INTERIORS LIMITED - Analysis Report

Company Number: 13040260

Analysis Date: 2025-07-20 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Inspiration Interiors Limited is a micro private limited company operating in building completion and finishing. The company shows very limited equity (£1,137) and persistent negative net current assets (working capital deficits) over the last several years, indicating marginal liquidity. However, the trend shows a slight improvement in net current liabilities year-on-year, suggesting some operational stability. Given the micro size, thin capitalization, and modest asset base, credit approval should be conditional on strict monitoring and potentially short-term or low-value facilities to mitigate risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£1,499) and current assets (£52,780) almost entirely offset by current liabilities (£53,142), resulting in a small net current liability of £362 at the latest year-end. Shareholders’ funds increased modestly from £971 to £1,137 over the last year, showing limited retained earnings or capital injection. The company’s gearing is low as total liabilities are short-term, but the lack of positive working capital suggests limited buffer to absorb financial shocks.

3. Cash Flow Assessment:
   The negative net current assets indicate a working capital deficit, which may constrain the company's ability to meet short-term obligations without cash inflows from operations or external funding. The accounts do not disclose cash balances explicitly, but the current asset figure likely includes receivables and possibly some cash. The company’s ability to generate consistent cash flow is critical, as reliance on creditors exceeds current liquid assets slightly. Cash flow management will be key to avoid liquidity issues.

4. Monitoring Points:

• Watch net current assets closely; persistent or increasing deficits could indicate worsening liquidity.
• Track creditors’ aging to evaluate payment delays or potential supplier pressure.
• Review turnover and profitability trends (not provided here) to assess operational cash generation.
• Monitor director and PSC financial conduct and any changes in ownership/control that could impact governance or risk profile.
• Confirm timely filing of accounts and confirmation statements continues, ensuring regulatory compliance.