ISDM INVESTMENT LTD

Executive Summary

ISDM INVESTMENT LTD currently presents a weak financial position with negative net assets and high leverage, raising concerns over its ability to service new or existing credit. The company operates at a micro scale with limited liquidity and no employees, indicating constrained operational capacity. Based on available data, credit extension is not advisable without significant improvement in financial strength and cash flow generation.

ISDM INVESTMENT LTD - Analysis Report

Company Number: 14305653

Analysis Date: 2025-07-20 17:25 UTC

1. Credit Opinion: DECLINE
   ISDM INVESTMENT LTD shows concerning financial indicators for credit extension. The company’s net assets are negative at -£13,027 as of August 2024, indicating a balance sheet deficit. The large creditor amounts falling due after more than one year (£372,780) dwarf the fixed assets (£355,000) and current assets. This suggests the company is highly leveraged with insufficient equity cushion. Additionally, the company employs no staff and operates at a micro-entity scale, which limits operational scale and diversification of income. Without stronger equity or positive cash flow evidence, the ability to service debt is questionable.

2. Financial Strength:
   The company’s fixed asset base of £355,000 primarily supports its balance sheet, but is outweighed by long-term liabilities of £372,780. Current assets are minimal (£7,113) but net current assets are positive (£4,753), indicating short-term liquidity is manageable. However, the negative net assets position (shareholders’ funds of -£13,027) implies erosion of equity and potential insolvency risk if losses continue. The balance sheet shows limited capital reserves and high gearing.

3. Cash Flow Assessment:
   No direct cash flow statement is provided, but the minimal current assets and relatively low net current assets alongside large long-term creditors raise concerns about liquidity sustainability. The absence of employees suggests limited ongoing operating expenses but also limited revenue-generating activity. Cash flow from operations is likely modest or negative. Working capital management appears weak given the creditor profile.

4. Monitoring Points:

• Monitor changes in net assets and equity position to detect stabilization or further deterioration.
• Track creditor balances, particularly long-term liabilities, to assess debt servicing capability.
• Review future filings for evidence of revenue growth or asset acquisition to strengthen financial position.
• Observe any changes in director or PSC structure which may impact governance or financial control.
• Watch for any overdue filings or signs of financial distress such as late payments or covenant breaches.