Company Number: 14719237

Analysis Date: 2025-07-29 20:24 UTC

1. Credit Opinion: DECLINE
   NEX LIMITED exhibits significant financial distress with a negative net asset position of £358,478 and net current liabilities of £73,703 as of 31 March 2024. The company’s creditors exceed current assets substantially, indicating liquidity issues and an inability to meet short-term obligations. Additionally, the company has no recorded employees and limited tangible fixed assets, suggesting minimal operational capacity. Given these factors and the early stage of incorporation, the risk of default is high, and approval of credit facilities is not recommended at this time.

2. Financial Strength:
   The balance sheet portrays a weak financial structure. Total current liabilities (£99,356) significantly outweigh current assets (£25,653), resulting in a negative working capital position. Furthermore, the company carries long-term director loans of £49,000 and other provisions of £237,866, contributing to the overall negative shareholders’ funds. The minimal share capital of £100 and accumulated losses indicate the company is still in a development or startup phase without established profitability or capital reserves.

3. Cash Flow Assessment:
   Cash held at bank is £3,754, which is inadequate relative to the level of creditors (£99,356) maturing within one year. The debtor book (£21,899) may provide some liquidity but is still insufficient to cover liabilities. The absence of employees points to a low operational cost base, but the current liabilities and provisions far exceed available liquid resources. There is a clear risk of cash flow shortfall impacting the company’s ability to service debts and pay suppliers promptly.

4. Monitoring Points:

• Improvement in net current assets and reduction of creditor balances
• Positive cash flow generation and increase in cash reserves
• Reduction or restructuring of director loans and provisions
• Evidence of operational activity and revenue growth to support debt servicing capacity
• Timely filing of future accounts and confirmation statements to assess ongoing financial trends