INTEGRATED AND AUTOMATED SOLUTIONS LIMITED

Executive Summary

Integrated and Automated Solutions Limited shows signs of financial strain with a sharp decline in net assets and negative working capital in its latest accounts, driven by increased liabilities and new long-term debt. While the company remains active and compliant with filings, its liquidity position raises caution on short-term payment capacity. Conditional credit approval is advised with close monitoring of cash flow, debt obligations, and management recovery plans to mitigate risk.

INTEGRATED AND AUTOMATED SOLUTIONS LIMITED - Analysis Report

Company Number: 13117703

Analysis Date: 2025-07-20 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Integrated and Automated Solutions Limited is a very young micro-entity in an industrial machinery installation sector, currently active with no overdue filings and no insolvency proceedings. However, the latest accounts reveal a significant deterioration in liquidity and net assets compared to the prior year, primarily due to a substantial increase in current liabilities and emergence of long-term borrowings. The company’s net current assets have shifted from a positive £46.7k in 2023 to a negative £5.5k in 2024, and net assets dropped from £16.3k to just £1.1k. This weakening balance sheet and working capital position raise concerns over short-term payment capability. The absence of employees and director advances also suggest limited operational scale and reliance on management capital or credit. Credit approval is recommended on the condition of monitoring cash flow closely and obtaining updated management forecasts. Additional security or covenants may be warranted to mitigate risk.

2. Financial Strength:
   The balance sheet shows a micro-sized company with modest fixed assets (£47k, up from £953) likely related to machinery or equipment investments during the year. Current assets have declined sharply from £90.7k to £46.1k, while current liabilities surged from £44k to £51.6k. The company also introduced long-term liabilities of £40.4k in 2024, a new development absent in prior years, impacting solvency. Shareholder funds have nearly depleted to £1.1k, indicating minimal equity buffer and elevated financial risk. The company’s capital structure now carries more debt relative to equity, which can strain financial flexibility.

3. Cash Flow Assessment:
   The working capital position has inverted, with net current liabilities of £5.5k, implying potential difficulty meeting short-term obligations without refinancing or new equity injection. The company employed no staff during the year, which may reduce cash burn but also indicates limited operational throughput. Cash flow generation capacity is uncertain due to lack of detailed profit and loss data disclosed here, but the drop in current assets and rise in creditors suggests either delayed receivables, stock liquidation, or increased payables. Liquidity management should be closely monitored, especially given the long-term debt introduced.

4. Monitoring Points:

• Quarterly cash flow statements to track liquidity trends and debt servicing ability
• Receivables aging and creditor payment terms for potential working capital pressure
• Status and terms of long-term borrowings and associated covenants
• Management plans for restoring equity and profitability
• Any changes in operational scale or employment that could impact cash requirements
• Timely filing of accounts and confirmation statements to ensure statutory compliance