LINE + LINE LTD

Executive Summary

Line + Line Ltd is a micro-entity with persistent and worsening negative net assets and poor liquidity, reflected by significant current liabilities exceeding current assets. The company shows no operational scale or cash flow capacity to service debt, leading to a declining credit profile. Credit facilities should be declined unless substantial restructuring or capital support is demonstrated.

LINE + LINE LTD - Analysis Report

Company Number: 13430902

Analysis Date: 2025-07-20 18:24 UTC

1. Credit Opinion: DECLINE
   Line + Line Ltd demonstrates significant and increasing net liabilities over the past three years, with net assets deteriorating from -£14,155 in 2021 to -£28,897 in 2024. The company’s current liabilities far exceed its current assets, indicating poor liquidity and a high risk of cash flow distress. There is no evidence of profitability or positive cash generation, and the company operates without employees, suggesting limited operational scale or growth potential. Given these factors, the company is unlikely to be able to service new or existing debt obligations without substantial external support.

2. Financial Strength:
   The balance sheet reflects persistent negative net assets and shareholders’ funds, worsening year on year. Fixed assets have been written down to zero in the most recent year, and current assets remain negligible (£71 in 2024). Current liabilities are substantial (£28,968 in 2024), leading to a net current liability position of -£28,897. This indicates poor solvency and an inability to meet short-term obligations from available liquid resources. The company’s micro-entity size and lack of employees further limit its financial robustness.

3. Cash Flow Assessment:
   Current assets are minimal, and working capital is deeply negative. The absence of fixed assets in 2024 and minimal current assets point to a lack of tangible or liquid resources to support ongoing operations. No audit or detailed cash flow statements are available, but the balance sheet position implies ongoing and unresolved cash flow constraints. There is no indication of revenue generation or cash inflows sufficient to reduce liabilities or improve liquidity.

4. Monitoring Points:

• Watch for any changes in the company’s liabilities structure, particularly reductions in short-term creditors or new financing arrangements.
• Monitor director transactions or capital injections by the controlling shareholder, Dr Christopher Donaldson, to assess any efforts to recapitalize.
• Track any operational developments that might improve revenue generation or lead to asset accumulation.
• Remain alert to any overdue filings or signs of financial distress such as late payments or creditor actions.