NOTION STARTUP LTD

Executive Summary

Notion Startup Ltd is currently in a precarious financial position with negative net assets and poor liquidity, making it unable to reliably service debt. The micro-entity's lack of operational scale and worsening balance sheet profile warrant declining credit facilities at this stage. Close monitoring of liquidity and any capital injections is essential before reconsidering credit exposure.

NOTION STARTUP LTD - Analysis Report

Company Number: 14525109

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: DECLINE
   Notion Startup Ltd exhibits significant financial distress, reflected in negative net current assets and net liabilities as at 31 December 2024. The company's inability to generate positive working capital or maintain any current assets suggests an acute liquidity problem, undermining its capacity to service debt or meet short-term obligations reliably. Given its micro-entity status with zero employees and minimal asset base, it lacks operational scale and resilience to absorb financial shocks. The director's 100% ownership concentration indicates centralized control but does not mitigate the weak financial position. Absent evidence of imminent capital injection or revenue growth, extending credit carries high risk.

2. Financial Strength:
   The balance sheet shows a deterioration from prior years. Net current assets dropped from positive £87 in 2023 to negative £44 in 2024, with current liabilities exceeding current assets. Total net assets moved into negative territory, indicating accumulated losses or increased liabilities without offsetting assets. The lack of fixed assets and zero reported current assets in the latest year reinforces the fragile financial footing. The company holds no tangible buffer and relies entirely on equity that is now negative. This weak financial strength signals potential solvency concerns.

3. Cash Flow Assessment:
   The absence of current assets and presence of current liabilities suggest very limited liquidity. With no employees and minimal operational scale, working capital management appears minimal or non-existent. The accounts do not indicate cash or equivalents, raising questions about the company's ability to meet immediate financial commitments. Cash flow constraints are likely severe, and without additional funding or operational revenues, liquidity risk is high.

4. Monitoring Points:

• Quarterly review of cash balances and working capital metrics to detect further deterioration or improvement.
• Watch for any changes in director/shareholder funding or capital infusion that could strengthen liquidity.
• Track filing of subsequent accounts and confirmation statements to ensure compliance and transparency.
• Monitor for any delays or defaults in payment obligations, indicating worsening credit risk.
• Observe any changes in business activity or expansion that could improve revenue generation.