NAVIGATOR IPM LIMITED

Executive Summary

Navigator IPM Limited currently shows a weak financial position with negative net assets and significant working capital deficits, indicating an inability to meet short-term obligations. The company’s liquidity constraints and limited equity buffer make credit approval unsuitable at present without substantial improvement in financial health. Close monitoring of liquidity and capital structure is essential for future reassessment.

NAVIGATOR IPM LIMITED - Analysis Report

Company Number: 13108686

Analysis Date: 2025-07-20 14:00 UTC

1. Credit Opinion: DECLINE
   Navigator IPM Limited’s financial position raises significant concerns. The company exhibits a negative net asset position (£-309) as at March 31, 2024, largely due to current liabilities (£260,284) far exceeding current assets (£4,975). This indicates a strained liquidity position and an inability to cover short-term obligations. The absence of positive working capital and the small equity base (£309) reflect weak financial resilience. The company’s business model, focused on real estate letting (SIC 68209), typically requires stable cash flows, which appear insufficient here. Given this financial strain and lack of clear cash flow support, approval for credit facilities is not advisable at this time.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £255,000 but current liabilities of £260,284, resulting in a net current liability of £255,309. This suggests the company may have capitalized fixed assets but is heavily reliant on short-term debt or payables to finance operations. The equity base is nominal (£309), indicating minimal buffer against losses or financial shocks. The movement from positive net assets (£100) in 2022 to negative net assets (£-309) in 2024 signals deterioration. The micro-entity status limits disclosure but the figures point to a fragile financial structure.

3. Cash Flow Assessment:
   Current assets (£4,975) are minimal and unlikely to cover the substantial current liabilities, implying poor liquidity and potential cash flow stress. The lack of detailed cash flow statements limits precise analysis, but the negative net current assets highlight a working capital deficit. The company’s reliance on current liabilities to fund operations is risky and may cause payment delays or defaults in the absence of external funding or equity injections. With only one employee and minimal working capital, operational cash generation appears very limited.

4. Monitoring Points:

• Track changes in current liabilities and current assets to assess liquidity improvement or deterioration.
• Monitor any capital injections or debt restructuring that may improve net asset position.
• Review future accounts for evidence of revenue growth or profitability that could enhance cash flow.
• Analyze director’s conduct and creditworthiness given sole control by Mr. Tejinderpal Singh Gill.
• Watch for timely filing of accounts and confirmation statements reflecting compliance and operational continuity.