LINKED LONDON LTD

Executive Summary

Linked London Ltd shows a marked decline in financial health during the latest year, moving from positive working capital and net assets to significant deficits and negative equity. Liquidity is critically low with minimal cash reserves against high current liabilities, presenting a high credit risk. Without evidence of operational turnaround or capital support, credit extension is not recommended at this time.

LINKED LONDON LTD - Analysis Report

Company Number: 12933160

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE
   Linked London Ltd’s latest financials show a significant deterioration in liquidity and net worth over the last year. The company has moved from net current assets of £3,772 in 2022 to net current liabilities of £6,733 in 2023, indicating a worsening working capital position. The net assets have shifted from positive £3,772 to negative £4,717, reflecting accumulated losses and an erosion of shareholder funds. The presence of overdrafts and director loans classified as creditors further undermines financial stability. Given the negative equity and cash being only £159 against current liabilities of £9,192, the company is at high risk of defaulting on short-term obligations. Without a clear turnaround or capital injection plan, extending credit facilities is not advisable.

2. Financial Strength:
   The balance sheet reveals weak financial health. Fixed assets consist mainly of a newly acquired motor vehicle (£2,016 net book value), but this is insufficient to offset significant current liabilities. The company’s share capital remains nominal (£100), with accumulated losses leading to negative shareholder funds. The increase in bank loans and overdrafts to £7,300 in 2023, when none existed previously, highlights reliance on external financing to cover operating cash shortfalls. The company is classified as a small private limited entity but is currently trading below sustainable levels from a financial standpoint.

3. Cash Flow Assessment:
   Liquidity is severely constrained. Cash on hand has plunged from £5,925 in 2022 to just £159 in 2023, while current liabilities have more than doubled. The company’s net current liabilities of £6,733 indicate a working capital deficit, which poses immediate repayment risk. There are no employees listed, suggesting minimal operational overheads, but this also raises questions about revenue generation capacity. The reliance on short-term credit facilities and director loans is a red flag for cash flow management. Without improved cash inflows or refinancing, the company may struggle to meet ongoing obligations.

4. Monitoring Points:

• Track quarterly updates on cash balances and current liabilities to detect further liquidity deterioration.
• Monitor bank overdraft utilization and any new borrowings, especially director loans, which may indicate funding pressure.
• Review any forthcoming profit and loss disclosures to assess revenue trends and operating margins.
• Watch for changes in director arrangements or filing compliance that could signal governance issues.
• Assess any capital raising or restructuring plans that could improve net asset position.