LOGRATIA CONSULTING LTD

Executive Summary

Logratia Consulting Ltd is a newly formed micro private limited company with significant negative net assets and working capital deficits after its first financial year. The company currently lacks the financial strength and liquidity to support credit facilities, presenting a high credit risk. Close monitoring of financial performance and cash flow is essential before reconsidering credit exposure.

LOGRATIA CONSULTING LTD - Analysis Report

Company Number: 14814919

Analysis Date: 2025-07-29 19:21 UTC

1. Credit Opinion: DECLINE
   Logratia Consulting Ltd is a newly incorporated micro-entity with its first financial year just ended. The company shows a negative net asset position of £8,264 and net current liabilities of £8,705, indicating immediate working capital shortfalls. The absence of turnover or profitability data and the small asset base raise concerns about its ability to service debt or meet short-term liabilities. Given the negative equity, lack of trading history, and limited financial resources, extending credit at this stage presents a high risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£441) and current assets (£1,168), offset by significant current liabilities (£9,873). The negative shareholders’ funds position signals accumulated losses or initial funding shortfalls. As a micro-entity with only one employee, its scale is very limited, and the financial base is weak. The company is heavily reliant on director funding or external financing to continue operations.

3. Cash Flow Assessment:
   Working capital is significantly negative (£-8,705), indicating an inability to cover short-term obligations from current assets. The lack of cash or equivalent assets is a liquidity risk. There is no reported cash flow statement to assess operating cash generation, but given the net current liabilities and absence of turnover, cash flow from operations is likely negative or insufficient. This suggests vulnerability to liquidity stress without additional capital injections.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds position in subsequent filings.
• Evidence of revenue generation and positive cash flow from operations.
• Any director loans or external financing arrangements that improve liquidity.
• Timely filing of future accounts and confirmation statements to assess ongoing compliance and business activity.
• Changes in ownership or directorship that may affect operational or financial strategy.