INSTINCTIVE COMMUNICATIONS LIMITED

Executive Summary

Instinctive Communications Limited is a micro-sized, newly formed private limited company with a modest but positive net asset position and sufficient liquidity to meet short-term obligations. Given its limited trading history and small equity base, credit approval should be conditional on continued monitoring of financial performance and cash flow stability. The company currently shows no red flags but warrants cautious optimism as it develops its operational track record.

INSTINCTIVE COMMUNICATIONS LIMITED - Analysis Report

Company Number: 14569422

Analysis Date: 2025-07-29 12:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Instinctive Communications Limited is a newly incorporated micro-entity with minimal financial history and modest net assets (£804). The company demonstrates a positive net current asset position, indicating short-term solvency. However, limited operating history and low capitalization pose some risk. Credit approval should be conditional on continued compliance with filing requirements, positive cash flow management, and monitoring of operational progress as the business scales.

2. Financial Strength:
   The balance sheet shows current assets of £9,791 against current liabilities of £8,987, yielding net current assets of £804. Total net assets equal £804, reflecting a small equity base consistent with a micro-entity startup. The company has no fixed assets or long-term liabilities disclosed. Share capital is minimal at £101, indicating that financial strength depends heavily on operational cash flows and future profitability. Overall, the financial position is stable but limited in scale and resilience.

3. Cash Flow Assessment:
   Current assets mainly consist of cash or equivalents and possibly receivables, supporting liquidity. The narrow margin between current assets and liabilities suggests working capital is sufficient but tight. The company’s ability to service short-term obligations currently appears adequate. However, given the small asset base and limited employee count (1), cash flow volatility could quickly impact liquidity. Close monitoring of cash inflows and timely collection of receivables is recommended.

4. Monitoring Points:

• Progress in revenue generation and profitability in subsequent periods
• Maintenance of positive net current assets to avoid liquidity strain
• Timely submission of annual returns and accounts filings
• Any changes in director or ownership structure that could impact control or strategy
• Expansion of capital base or acquisition of assets to improve financial stability
• Cash flow trends, especially in relation to operational expenses and creditor payments