LEFT SHIFT IT LIMITED
Company number 08806528 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: LEFT SHIFT IT LIMITED
1. Credit Opinion: DECLINE
Reasoning: This company is technically insolvent with negative net assets of £769 as at 31 December 2024. The balance sheet offers no tangible security position, liquidity is negligible at £404 in current assets, and there is no visibility over trading profitability due to micro-entity filing exemptions. The dramatic movement in long-term creditors (£1.76M eliminated year-on-year) raises material concerns about financial reporting quality and underlying commercial viability. No basis exists to support debt servicing capacity.
2. Financial Strength
Balance Sheet Summary (2024 vs 2023):
| Metric | 2024 | 2023 |
|---|---|---|
| Fixed Assets | £0 | £0 |
| Current Assets | £404 | £47,844 |
| Creditors: <1 year | (£1,173) | (£83,828) |
| Net Current Assets | (£769) | (£35,984) |
| Creditors: >1 year | £0 | (£1,759,231) |
| Net Assets | (£769) | (£1,795,215) |
| Share Capital | £103 | £103 |
Key Observations:
- Insolvent position: The company has negative net assets in both periods, indicating liabilities exceed assets. Shareholder funds are eroded to (£769).
- Long-term creditor elimination: The £1,759,231 in long-term creditors present in 2023 has been entirely removed by 2024. Given the PSC structure (Silverstone and Smith controlling 25-50% and 50-75% respectively), these were almost certainly related-party loans that have been forgiven or restructured. While this improves the balance sheet nominally, it does not indicate commercial viability.
- Minimal share capital: At £103, the equity base is functionally non-existent and has never been supplemented by meaningful capitalisation.
- No tangible asset base: Zero fixed assets and negligible current assets provide no security coverage for any facility.
3. Cash Flow Assessment
Liquidity Position: - Current ratio: 0.34x (2024: £404 / £1,173) — critically impaired - Working capital deficit: £769 (marginally improved from £35,984 in 2023, but still negative) - Cash position: Not disclosed for 2024; historically minimal (£100 reported in 2016)
Assessment: The company cannot meet its current liabilities from current assets. With only £404 in current assets against £1,173 due within one year, there is a clear liquidity shortfall. As a single-employee micro-entity with no disclosed revenue or profit figures, there is no evidence of operational cash generation sufficient to service debt obligations.
Working Capital Concern: The 94% decline in current assets (from £47,844 to £404) year-on-year, coupled with a 99% decline in current liabilities (from £83,828 to £1,173), suggests either a cessation of trading activity or a stripping down of the business to a dormant-like state. Neither interpretation supports creditworthiness.
4. Monitoring Points
| Metric | Concern | Threshold |
|---|---|---|
| Net asset position | Insolvency risk | Must return to positive |
| Current assets | Liquidity adequacy | Monitor for further decline |
| Filing compliance | Currently compliant | Watch for overdue accounts |
| Director conduct | No disqualifications found | Re-check annually |
| Related-party transactions | Debt forgiveness requires explanation | Seek full disclosure |
| Trading status | Possible dormancy/cessation | Confirm operational status |
Specific Red Flags: 1. Substance of operations: With one employee and £404 in current assets, confirm whether the company is actively trading or effectively dormant 2. Long-term creditor write-off: The £1.76M removal requires explanation — was this genuine debt forgiveness by directors, or an accounting reclassification? 3. Historical insolvency trend: The company has carried negative net assets since at least 2016 (excluding the ambiguous 2015 position of £807), raising questions about going concern viability 4. Related-party exposure: Both PSCs are directors; related-party balances may distort the true financial position