MIND AND PLANET LTD

Executive Summary

Mind and Planet Ltd is a small micro-entity currently exhibiting negative net assets and working capital deficits, indicating poor financial health and limited liquidity. The company’s inability to cover short-term liabilities suggests a high credit risk, warranting a decline of credit facilities at this time. Close monitoring of financial improvements and cash flow enhancements is essential before reconsidering credit exposure.

MIND AND PLANET LTD - Analysis Report

Company Number: 14291898

Analysis Date: 2025-07-20 19:17 UTC

1. Credit Opinion: DECLINE
   Mind and Planet Ltd demonstrates weak financial health with negative net current assets and net liabilities for the most recent two years. The company is currently a micro entity with minimal assets and persistent current liabilities exceeding current assets, indicating insufficient liquidity and inability to cover short-term obligations. The negative equity position and ongoing losses raise serious concerns about the company’s capacity to service debt or honor commercial commitments without additional capital injection or significant business improvement. Given these factors, the credit risk is high and credit facilities should be declined at this stage.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position. As of 31 August 2024, current liabilities (£2,969) exceed current assets (£1,193) resulting in net current liabilities of £1,776. Shareholders’ funds are negative at £1,776, reflecting accumulated losses or insufficient capital. The company has shown a worsening trend from a net asset positive position in 2022 (£1,071) to negative equity in 2023 and 2024. The small scale (micro entity) and minimal fixed assets suggest limited collateral available to support lending.

3. Cash Flow Assessment:
   The company’s cash position is very limited (£778 last year, unspecified this year but current assets remain low). The current liabilities outstrip current assets by a significant margin, indicating working capital pressures and likely cash flow constraints. With only two employees and a micro scale of operation, the company may have low overheads but also limited revenue generation capacity. This lack of liquidity poses a risk for timely repayment of any credit extended.

4. Monitoring Points:

• Improvement in net current assets and positive cash flow generation
• Stabilization or growth in net assets and shareholders’ funds
• Timely filing of future accounts and confirmation statements
• Changes in operating scale or business model to improve profitability
• Any capital injections or restructuring efforts by shareholders or directors