INTEDELTA LIMITED

Risk Rating: MEDIUM While the company is technically solvent with an improving net asset position, it receives a Medium risk rating due to significant liquidity concerns. The dramatic shift in the balance sheet from cash-based current assets to a large, potentially illiquid "Prepayments and accrued income" asset, coupled with minimal cash reserves against substantial short-term creditors, raises immediate questions about cash flow stability.

Key Concerns - Asset Quality and Liquidity: Current assets dropped drastically from £89,831 (2023) to £8,617 (2024). This cash drain was offset on the balance sheet by a massive increase in "Prepayments and accrued income," which surged from £100,786 to £230,010. If this large asset cannot be readily converted to cash, the company faces severe liquidity constraints. - Short-term Creditor Pressure: Creditors due within one year increased to £84,235 (up from £48,392). With only £8,617 in current assets, the company relies entirely on the realizability of the prepayments/accrued income to meet its near-term obligations. - Key Person Dependency: As a micro-entity with an average of one employee (who is also the director and 75%+ shareholder), the firm's operational continuity and revenue generation are entirely dependent on a single individual.

Positive Indicators - Improved Net Assets: Net assets nearly doubled year-over-year, rising from £48,405 to £92,590, indicating a strengthening of the overall equity position on paper. - Reduction in Long-term Debt: Creditors falling due after more than one year decreased from £92,430 to £60,412, suggesting the company is successfully deleveraging its long-term obligations. - Filing Compliance: The company is active, up to date with its filing requirements (accounts and confirmation statement are not overdue), and has not triggered any insolvency procedures.

Due Diligence Notes - Nature of Accrued Income: The most critical item to investigate is the £230,010 classified as "Prepayments and accrued income." An investor must determine if this represents bona fide revenue due from creditworthy clients, or if it represents related-party balances or capitalized costs that may never convert to cash. - Director's Loan Status: The 2023 accounts noted a £9,852 unsecured, interest-free director's loan (owed by the director to the company). The 2024 year-end balance is unclear from the current formatting, but given the drop in current assets, it is necessary to confirm whether this loan was repaid or if further advances were made. - Cash Flow Viability: Given the minimal cash position (£8,617 in current assets against £84k in short-term debts), it is vital to review cash flow forecasts and recent management accounts to ensure the company can fund its ongoing trading operations without requiring further director interventions or external finance.