Company Number: SC711618

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: DECLINE
   Packsure Limited presents significant credit risk at this stage. Despite being active and having no overdue filings, the company shows a substantial net liability position of £187,728 as of 28 February 2024, with negative net current assets of £653,092. Current liabilities of £844,965 far exceed current assets of £191,873, indicating an inability to meet short-term obligations from operational liquidity. The company’s financials reveal a loss for the year, with no employees reported, reflecting a nascent or possibly dormant operational state. The large balance owed to group undertakings (£822,606) suggests reliance on intra-group funding rather than independent cash generation. Without clear evidence of profitability or cash flow to service debts, extending credit or granting facilities is not advisable.

2. Financial Strength:
   The balance sheet is weak, showing negative net assets and shareholders’ funds, primarily due to a £187,729 loss accumulated in the latest year. Tangible fixed assets of £519,398 provide some asset backing, but these are largely offset by current liabilities and provisions (£54,034). The company’s equity base is almost entirely eroded, undermining its financial resilience. The heavy reliance on amounts owed to group undertakings as current liabilities rather than bank or trade creditors suggests limited external financing and potential liquidity constraints if intra-group support is withdrawn.

3. Cash Flow Assessment:
   Cash at bank is £146,854, which is insufficient to cover current liabilities of £844,965. The negative net current assets position (-£653,092) highlights a significant working capital deficit. Debtors of £45,019 appear modest and may not be readily realisable. The absence of employees and operating profits raises concerns about the company’s capacity to generate positive operating cash flow. The directors’ statement notes reliance on group support to continue as a going concern, indicating that independent cash flow generation is currently inadequate.

4. Monitoring Points:

• Track changes in net current assets and liquidity position to detect any improvement or further deterioration.
• Monitor levels of intra-group funding and repayment terms to assess ongoing support viability.
• Review upcoming account filings for signs of operational activity or profitability.
• Observe any changes in directors or PSC structure that may signal strategic shifts.
• Watch for overdue filings or arrears in statutory obligations as early warning signs.