CREDIT ASSESSMENT: INVESTIX LTD

1. Credit Opinion: DECLINE

This application must be declined. Investix Ltd is technically insolvent and deteriorating rapidly. The company has negative shareholders' funds of £144,040 (June 2025), worsening from negative £101,110 in the prior year—a 42.6% decline in net worth. Current liabilities exceed current assets by £142,054, meaning the company cannot pay its debts as they fall due—a fundamental insolvency indicator under Section 123 of the Insolvency Act 1986. No credible repayment source has been demonstrated for any new credit facility.

2. Financial Strength: CRITICAL

The balance sheet reveals a deeply distressed entity:

Key concerns:

• Accelerating insolvency: The company moved from marginal solvency (£1 equity in 2021) to a £144,040 deficit within four years. The rate of deterioration is accelerating—negative equity increased by £42,930 in the latest year alone.

• Liability growth outpacing assets: Total liabilities grew from £69,077 (2021) to £249,869 (2025)—a 262% increase—while total assets declined from £129,740 to £125,196. This indicates accumulated trading losses or undisclosed liabilities consuming the balance sheet.

• No tangible security: Fixed assets stand at only £17,381. Current assets of £107,815 are dwarfed by current liabilities of £249,869. There is no asset base against which to secure lending.

• Micro-entity filing: The company files only the bare minimum accounts, providing no P&L, no turnover figures, and no cash flow statement. This opacity is typical of entities seeking to obscure poor trading performance.

3. Cash Flow Assessment: SEVERELY IMPAIRED

Working capital position is catastrophically negative:

• Current ratio: 0.43x (current assets £107,815 vs current liabilities £249,869)
• The company requires approximately £142,054 in additional working capital simply to meet existing obligations due within one year

Director loan concern: The director's outstanding advance increased from £3,693 to £8,690 during the year, with £8,097 in new advances offset by only £3,100 in repayments. The director is extracting funds from an insolvent entity—this constitutes a material governance red flag and potential preference risk under insolvency law.

Historical cash positions (where disclosed) show near-zero liquidity: £6 (2019), £44 (2018), £2,793 (2020). The company appears to operate hand-to-mouth with no cash buffer.

4. Monitoring Points

Should any existing exposure exist, the following require immediate attention:

1. Wrongful trading risk: Under Section 214 of the Insolvency Act 1986, the sole director may be personally liable if he continues trading when there was no reasonable prospect of the company avoiding insolvent liquidation. The current balance sheet strongly suggests this threshold has been crossed.

2. Director conduct: The increase in director advances while the company is insolvent warrants referral for potential preference or misfeasance review. Any creditor should consider whether these transactions constitute undervalue transactions.

3. Creditor position deterioration: Trade and other creditors due within one year increased from £228,541 to £249,869—a 9.3% increase. The company appears to be funding operations by stretching creditor payments.

4. Long-term liabilities: Creditors due after one year decreased from £15,058 to £4,666, and accruals/deferred income fell from £24,551 to £14,701. This suggests either settlement or reclassification to current liabilities—neither interpretation is positive.

5. Registered office: Michelin House is a well-known virtual office address. This raises questions about the physical substance of operations.

Additional Risk Factors