LINSPOT LTD

Executive Summary

Linspot Ltd’s financial position has worsened significantly in the latest year, with net liabilities expanding due to a large increase in current liabilities and insufficient current assets. The company exhibits poor liquidity and working capital deficits, raising substantial credit risk. Given the micro-entity scale and absence of corrective action evidence, credit approval is not advisable at this time.

LINSPOT LTD - Analysis Report

Company Number: 12661149

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: DECLINE
   Linspot Ltd shows significant deterioration in financial health over recent years. The net liabilities ballooned from a marginal -£5 in 2023 to a concerning -£14,180 in 2024, driven primarily by sharply increased current liabilities (£15,940 in 2024 from £1,614 in 2023). This indicates an inability to meet short-term obligations and poor working capital management. The company’s micro classification and small share capital (£1) offer limited financial buffer. Without evidence of improving cash flows or turnaround plans, the risk of default is high.

2. Financial Strength:
   The balance sheet reveals very weak financial strength. Fixed assets are negligible (£201 in 2024) and current assets are minimal (£1,559), insufficient to cover current liabilities. Net current liabilities of -£14,381 indicate a severe working capital deficit and potential liquidity crisis. The net asset position is deeply negative (-£14,180), eroding shareholder equity and indicating accumulated losses or debt. This lack of financial resilience is critical for a company in a competitive take-away food sector.

3. Cash Flow Assessment:
   The data suggests poor liquidity with current assets far outstripped by current liabilities. This negative working capital position implies operational cash flow issues and an inability to finance day-to-day expenses without external support. The absence of profit and loss data limits a full cash flow analysis, but the balance sheet signals likely cash flow stress. The consistent average employee count of 4 may contribute fixed costs that are unsustainable given the financial position.

4. Monitoring Points:

• Track current liabilities and working capital trends quarterly to detect further deterioration.
• Monitor any changes in trade debtor collections or supplier payment terms that could impact liquidity.
• Review management’s plans to reduce liabilities or increase capital injection.
• Watch for overdue filings or any director conduct issues that may arise.
• Assess any improvements in profit margins or cash generation as reported in future accounts.