Company Number: SC717222

Analysis Date: 2025-07-20 17:29 UTC

1. Credit Opinion: DECLINE
   Invergordon Auto Repairs Ltd demonstrates significant financial distress with persistent and growing net liabilities over the last three years. The company’s net current liabilities have increased substantially from -£23,464 in 2021 to -£43,759 in 2024, and net assets remain deeply negative at -£38,427 as of the latest accounts. Such a weak balance sheet indicates that the company is currently unable to meet its short-term obligations without external support. The absence of profitability data and continued erosion of equity raise serious concerns about its ability to service new credit facilities or loans.

2. Financial Strength:
   The company’s balance sheet shows a small base of fixed assets (£5,332) with minimal current assets (£1,984) heavily outweighed by current liabilities (£45,743). The negative net current assets position reflects poor working capital management and liquidity constraints. Shareholders’ funds are negative and deteriorating, evidencing accumulated losses likely exceeding the initial capital invested. The company’s size (micro to small) and limited asset base reduce its financial resilience and ability to absorb shocks or downturns.

3. Cash Flow Assessment:
   Cash at bank increased from £189 in 2023 to £1,734 in 2024, a positive sign; however, the cash balance remains insufficient against current liabilities of £45,743. This indicates potential liquidity risk and inability to cover immediate debts. Negative working capital suggests the company may be relying on supplier credit or short-term borrowing to fund operations, which is unsustainable long term without improved cash generation or capital injection.

4. Monitoring Points:

• Track changes in net current assets and liquidity to detect any improvement or further deterioration.
• Review upcoming filings for profit and loss performance to assess operational profitability trends.
• Monitor director and shareholder actions for any capital injections or restructuring efforts.
• Watch for overdue payments or defaults on liabilities that may signal worsening credit risk.