Company Number: 14540847

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

1. Credit Opinion: DECLINE
   Memree Limited shows significant liquidity and solvency concerns at the balance sheet date of 30 April 2024. The company has net current liabilities of £76,097, indicating that current liabilities exceed current assets by a wide margin. Shareholders' funds are negative (£76,197), reflecting accumulated losses and an erosion of equity capital. This financial position suggests an inability to meet short-term obligations from liquid resources, which poses a high risk for extending credit facilities without substantial mitigating factors. The company is also very young (incorporated December 2022) with limited operational history, which further increases risk. Without evidence of a robust business plan, cash injection, or strong external support, the credit risk is elevated.

2. Financial Strength:
   The company’s balance sheet is weak. Total current assets stand at £106,565, mainly in stock (£51,165) and debtors (£36,577), but current liabilities are £182,662, more than 70% higher than current assets. Negative net current assets (-£76,097) signal strained working capital. The lack of fixed assets and the negative shareholders’ funds indicate that the business is currently undercapitalized. This fragile financial structure limits the company’s ability to absorb operational shocks or fund growth without additional capital.

3. Cash Flow Assessment:
   Cash at bank is £18,823, which is insufficient to cover the high current liabilities due within one year. Debtors amounting to £36,577 provide some near-term inflows but may be subject to collection risk. There is no data on profitability or operating cash flows since the company filed only a balance sheet and notes, not an income statement. The negative working capital position suggests potential cash flow difficulties in meeting immediate debts and operational expenses. The company will likely require external financing or capital contributions to maintain liquidity.

4. Monitoring Points:

• Improvement in net current assets and reduction of negative working capital.
• Timely collection of debtors and turnover of inventory to improve cash conversion cycle.
• Evidence of profitability or positive operating cash flows in subsequent periods.
• Capital injections or shareholder loans that bolster equity and liquidity.
• Management actions to control or reduce current liabilities, including negotiating payment terms.
• Regular monitoring of filing deadlines and compliance to avoid regulatory risks.