INZYME LABS CIC

Executive Summary

INZYME LABS CIC is a newly formed community interest company with limited financial history and a marginally negative net asset position. Current liquidity and working capital are constrained, with no evidence of profitability or cash flow generation. Given these factors and the company's early stage, credit facilities are not recommended at this time, but ongoing monitoring of financial performance and liquidity is essential.

INZYME LABS CIC - Analysis Report

Company Number: 15118766

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: DECLINE
   INZYME LABS CIC is a recently incorporated community interest company with minimal trading history and negative net assets of £158 as at 30 September 2024. The company operates on a limited financial scale, reflected by its small current asset base (£9,414) and current liabilities (£9,572) exceeding current assets, resulting in a working capital deficit. There is no evidence of profitability or cash generation as directors have not filed a profit and loss account and report zero employees, indicating minimal operational activity. The company’s financial position and short trading history provide insufficient assurance of its ability to meet debt obligations or sustain credit facilities at this stage.

2. Financial Strength:
   The balance sheet shows a net liability position of £158, which is small in absolute terms but still reflects negative equity. The current liabilities marginally exceed current assets, resulting in a slightly negative working capital position. The company holds only £1,714 in cash and £7,700 in trade debtors, which could be uncertain in collectability given the early stage of operations. No fixed assets or long-term assets are reported, and the company is limited by guarantee, with no share capital to provide a capital buffer. Overall, the financial structure is weak and lacks tangible resources or reserves.

3. Cash Flow Assessment:
   Cash at bank is low (£1,714), and the company’s working capital is negative, indicating potential liquidity constraints. The company relies on trade debtors (£7,700) and accruals/deferred income (£8,722) but does not report revenues or profits. The absence of employees and directors’ remuneration suggests minimal cash outflows but also limited trading activity or income generation. With current liabilities roughly equal to current assets and no clear cash flow from operations, liquidity risk is elevated, and the company may require external funding or grants to support ongoing operations.

4. Monitoring Points:

• Track improvements in net current assets and net asset position over the next 12 months.
• Monitor cash flow statements once available to assess operational cash generation and liquidity trends.
• Review any forthcoming profit and loss disclosures to evaluate profitability and revenue growth.
• Watch for changes in debtor quality and creditor terms to evaluate working capital management.
• Assess ongoing stakeholder funding or grant support given the CIC structure and mission.
• Monitor any changes in company structure, additional capital injections, or director appointments.