NOORIG LTD

Executive Summary

NOORIG LTD is currently financially weak with significant negative net assets and working capital deficits, relying heavily on shareholder funding to maintain operations. The company has not demonstrated independent cash flow generation or profitability, which raises concerns about its ability to service debt. Without improvement in liquidity and profitability, extending credit facilities would entail high risk.

NOORIG LTD - Analysis Report

Company Number: 13800599

Analysis Date: 2025-07-29 20:01 UTC

1. Credit Opinion: DECLINE
   NOORIG LTD demonstrates a weak financial position with persistent negative net assets and working capital deficits, indicating an inability to meet short-term liabilities from current assets. The company has accumulated losses increasing over the last two years and is reliant on continued financial support from its sole shareholder to maintain operations. There is no evidence of profitable trading or cash flow generation to support independent debt servicing. The director's loan account is significant and growing, reflecting dependency on shareholder funding rather than operational cash flow. Until the company can demonstrate sustainable profitability and positive net working capital, credit exposure would be high risk.

2. Financial Strength:
   The balance sheet shows net liabilities of £1,624 as of 31 December 2023, worsening from £857 the previous year. Current liabilities (£1,985) exceed current assets (£361) by a substantial margin, resulting in negative working capital. The company's equity base is effectively eroded, with shareholders’ funds negative and declining. The absence of fixed assets and limited cash reserves (£210) further weaken financial resilience. The company is categorized as a micro-entity, which aligns with minimal operational scale and resources.

3. Cash Flow Assessment:
   Liquidity is constrained, with cash and receivables totaling only £361 against almost £2,000 in current liabilities. The cash balance decreased significantly from £2,902 in 2022 to £210 in 2023, indicating cash burn over the period. The director’s loan account increased to £895, reflecting reliance on shareholder advances to fund working capital needs. The company’s inability to generate sufficient operating cash flow is a major concern, and repayment of trade creditors and tax liabilities depends on external funding support.

4. Monitoring Points:

• Improvement in net current assets and overall net assets to reduce negative equity and working capital deficits.
• Generation of positive operating cash flow to reduce reliance on director’s loans and shareholder support.
• Timely settlement of corporation tax liabilities, which have decreased but remain significant.
• Progress towards profitability and consistent revenue growth to demonstrate business viability.
• Director’s intentions and ability to continue financial support if operational cash flow remains insufficient.