LIBERATED EMBEDDED SYSTEMS LTD

Executive Summary

Liberated Embedded Systems Ltd is a newly formed micro-entity presenting a weak financial profile with negative net assets and insufficient liquidity. The absence of trading activity and current operating losses highlight significant credit risk. Approval of credit facilities is not recommended until evidence of sustainable revenue and improved financial strength emerges.

LIBERATED EMBEDDED SYSTEMS LTD - Analysis Report

Company Number: 14722578

Analysis Date: 2025-07-29 14:03 UTC

1. Credit Opinion: DECLINE
   Liberated Embedded Systems Ltd is a very newly incorporated micro-entity with minimal operations and has reported a net liability position of £746 as of 31 March 2024. The negative net current assets and net assets indicate the company is currently insolvent on a balance sheet basis. There is no evidence of trading activity or revenue generation, and no employees are recorded. Given the absence of operating history, negative equity, and minimal current assets, the company presently lacks the financial capacity to service any credit facility. Approval of credit at this stage would carry high risk.

2. Financial Strength:
   The company holds no fixed assets and only £962 in current assets, primarily cash or equivalents. Current liabilities exceed current assets by £746, resulting in negative net current assets and net asset value. Shareholders’ funds are negative, indicating that liabilities exceed assets. This weak balance sheet reflects initial setup costs or outstanding payables that have not yet been offset by revenue or capital injection. The company is classified as micro-entity, but even for this size, the financial position is fragile.

3. Cash Flow Assessment:
   With only £962 in current assets and no recorded income or employees, liquidity appears constrained. Current liabilities of £1,708 suggest short-term obligations exceed readily available resources. The negative working capital position signals potential difficulty meeting near-term debts without additional funding. Absence of trading cash flow and no evidence of operating cash inflows imply reliance on external capital or director support for liquidity.

4. Monitoring Points:

• Future trading results and revenue generation to assess operational viability.
• Changes in working capital and net asset position to track financial improvement.
• Timely filing of future accounts and confirmation statements to monitor compliance and company activity.
• Any additional capital injections or director loans that improve liquidity.
• Director changes or PSC alterations that may signal shifts in control or strategy.