NETZERO RETROFIT LTD

Executive Summary

Netzero Retrofit Ltd is a recently established micro-entity with weak financials characterized by negative net assets and insufficient working capital. Despite directors’ assurances of support, the company lacks liquidity and profitability, posing a high credit risk. Credit facilities should be declined until financial stability and cash flow improve demonstrably.

NETZERO RETROFIT LTD - Analysis Report

Company Number: 13937574

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: DECLINE
   Netzero Retrofit Ltd currently shows a net deficiency in assets (£-1,847) and negative working capital, indicating an inability to meet short-term liabilities from current assets. The company is a micro-entity with minimal capital (£100 share capital) and limited cash resources (£733 current assets including likely minimal cash), which raises concerns about its capacity to service debt or absorb financial shocks. Although directors have provided support assurances, there is no external evidence of financial strength or profitability. The company’s recent incorporation (2022) and ongoing losses further increase credit risk. Without stronger financials or demonstrable cash flow, extending credit is not advisable.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £1,847 and negative shareholders’ funds, indicating erosion of equity capital. The company’s asset base is very small, and it relies heavily on director support rather than internally generated funds. The increase in employees from 1 to 5 in one year suggests growth plans but also increased fixed cost burden. The absence of an audit and limited disclosure (micro-entity accounts) mean financial transparency is low. Overall, the financial position is weak and insufficient for credit exposure.

3. Cash Flow Assessment:
   Current assets at £733 fall significantly short of current liabilities at £2,580, reflecting poor liquidity and negative working capital. Cash specifically is minimal, and the company likely depends on external funding or director loans to meet obligations. The lack of a profit and loss statement prevents detailed cash flow analysis, but the balance sheet snapshot suggests limited operational cash generation. The company’s survival is contingent on continuing director support.

4. Monitoring Points:

• Track future filings to monitor improvement in net assets and liquidity ratios.
• Watch for consistent positive cash flows and profitability in future accounts.
• Monitor director loan balances or external funding sources for sustainability.
• Review any changes in the business model or management that improve financial resilience.
• Keep an eye on employee numbers relative to revenue generation to assess cost control.