INTELLIGENT WORKSPACES GROUP LTD

Executive Summary

Intelligent Workspaces Group Ltd exhibits a critical liquidity shortfall and minimal equity, heavily reliant on director loans and related party creditors. Although generating some operating profit, interest expenses negate net profitability, and cash reserves are insufficient to cover liabilities. Credit facilities are not advisable until substantial improvements in cash flow and capital structure are demonstrated.

INTELLIGENT WORKSPACES GROUP LTD - Analysis Report

Company Number: 12711056

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: DECLINE. The company shows a severely strained liquidity position with significant current liabilities (£213,270) vastly exceeding current assets (£844), resulting in a net current liability of £212,426 as of 31 March 2024. Despite showing a modest turnover (£12,238) and operating profit before interest (£10,837), the interest payable equals the operating profit, leaving no net profit. The heavy reliance on director loans and related party creditors indicates potential financial support but also risk concentration. The company's net assets remain nominal (£2), and there is no tangible equity buffer. The financial profile suggests limited ability to service additional debt or commercial credit without significant improvement in cash flow or capital structure.

2. Financial Strength: The balance sheet is weak and highly leveraged. Fixed assets of £369,345 represent investments in a subsidiary but do not translate into current liquidity. Current liabilities have increased more than threefold since 2023, mainly due to director loans (£140,866) and group company creditors (£57,342). The company has no retained earnings or reserves to absorb losses or fund growth. The negligible shareholders’ funds (£2) and net assets indicate minimal equity backing. The company's financial structure is fragile, heavily reliant on short-term and related party financing, raising concerns on sustainability and resilience.

3. Cash Flow Assessment: Liquidity is critically constrained, with only £844 in cash and no receivables to support working capital needs. The negative net current assets position suggests the company may struggle to meet short-term obligations without additional funding. The absence of trade creditors and taxation liabilities indicates limited external trade credit or tax arrears, but the high level of other creditors (mainly loans) signals dependency on internal financing. The cash flow from operations appears insufficient to cover interest costs, implying reliance on external injections to maintain operations.

4. Monitoring Points:

• Track changes in current liabilities, especially director loans and related party balances.
• Monitor cash balances and operating cash flow improvements to assess liquidity recovery.
• Review subsidiary performance if investments are material to overall financial health.
• Watch for any changes in ownership or director arrangements that may impact governance or funding.
• Ensure timely filings and compliance to avoid regulatory risks.