ISD ASSOCIATES LTD

Executive Summary

ISD ASSOCIATES LTD is a newly incorporated micro-entity with minimal financial substance and negligible net assets. The company currently lacks operating history, liquidity, and working capital to support credit risk. Without evidence of financial improvement and cash flow generation, credit exposure is not recommended at this stage.

ISD ASSOCIATES LTD - Analysis Report

Company Number: SC751998

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: DECLINE
   ISD ASSOCIATES LTD’s financial profile is extremely limited due to its recent incorporation (December 2022) and micro-entity status. The company has negligible net assets (£1) and minimal current assets (£1,875) almost exactly matched by current liabilities (£1,874), showing virtually no working capital. There is no evidence of operating income or cash flow from trading, and no employees. The business is in the real estate trading sector but has not demonstrated any financial substance or activity to support debt servicing capability. Given the lack of financial depth, absence of trading history, and minimal equity, extending credit at this stage would be high risk.

2. Financial Strength:
   The balance sheet shows a fragile financial position with total net assets of only £1, reflecting a start-up stage with no accumulated reserves or fixed assets recorded. The company is solvent on a technical basis but with an insignificant margin. The absence of fixed assets or retained earnings suggests the company may rely on external funding or capital injections to operate. The micro-entity filing status implies limited disclosure, restricting deeper analysis.

3. Cash Flow Assessment:
   Current assets consist of only £1,875, likely cash or receivables, offset by almost equal current liabilities, resulting in minimal net working capital (£1). This leaves the company with virtually no liquidity buffer to meet unexpected expenses or debt repayments. No employees or operational details indicate no internal cash generation. The company’s ability to generate positive cash flow or service debt is unproven and currently weak.

4. Monitoring Points:

• Future filings to assess trading activity, revenue generation, and cash flow improvements
• Changes in net current assets and equity levels to confirm financial strengthening
• Directors’ reports or strategic outlook for business plans or capital injections
• Timely filing of accounts and confirmation statements to monitor compliance and operational status
• Any increase in fixed assets or working capital indicating business scale-up