LOGIBOX LIMITED

Executive Summary

Logibox Limited is financially distressed, showing worsening net liabilities and a significant working capital deficit, indicating an inability to meet short-term obligations. The company’s liquidity has sharply declined, and it relies on director/shareholder support to continue operating. Credit facilities are not recommended without substantial assurances or financial restructuring.

LOGIBOX LIMITED - Analysis Report

Company Number: 13971941

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: DECLINE. Logibox Limited’s financial statements reveal significant net liabilities worsening from £653 in 2023 to £14,453 in 2024, indicating negative equity and poor financial health. The company’s current liabilities far exceed current assets, creating a substantial working capital deficit (£18,300). This raises serious concerns about its ability to meet short-term obligations and service any new debt. There is also no evidence of profitability or cash flow improvement, and reliance on director/shareholder financial support to continue as a going concern highlights vulnerability. Given these factors, extending credit is high risk unless substantial mitigating information or guarantees are provided.

2. Financial Strength: The company’s balance sheet is weak. Fixed assets are minimal (£3,847), and current assets have declined sharply from £7,735 in 2023 to £3,295 in 2024, primarily due to a cash decrease from £7,662 to £3,100. Current liabilities nearly doubled to £21,595, driven mainly by a rise in other creditors (£19,382). The net asset position is deeply negative, indicating accumulated losses and insufficient capital. Shareholders’ funds (equity) are negative at £14,454, reflecting erosion of capital and poor financial resilience. The company is classified as a small entity but shows signs of financial distress and weak capitalization.

3. Cash Flow Assessment: Liquidity is strained. Cash on hand has dropped by over 50% year-on-year, and net current liabilities have expanded markedly, pointing to tight working capital and potential cash flow problems. Debtors remain low and stable (£195), so accounts receivable are unlikely to provide near-term relief. The company’s accruals and deferred income have increased, suggesting possible cash flow timing issues or delayed revenue recognition. The directors’ note on going concern reliance on external financial support further underscores cash flow fragility. Without improved cash generation or capital injection, the company is at risk of defaulting on short-term payables.

4. Monitoring Points:

• Watch for improvements in net current assets and liquidity ratios.
• Monitor creditor balances, particularly other creditors, for signs of payment delays or disputes.
• Track cash flow from operations and any new capital contributions from directors or shareholders.
• Review future filings for evidence of profitability or turnaround plans.
• Assess director and shareholder financial support commitments regularly.
• Pay attention to any overdue filings or changes in company status signaling worsening financial condition.