Company Number: 13910009

Analysis Date: 2025-07-20 17:08 UTC

1. Credit Opinion: DECLINE
   PalisadeSECURE Systems Ltd exhibits significant financial distress. The latest accounts to 29 February 2024 show negative net assets of £135,718 and a net current liability position of £167,936, indicating insolvency on a balance sheet basis. Current liabilities have increased sharply from £53,665 to £174,208 within one year, far outpacing current assets which have declined drastically. The company’s ability to meet short-term obligations is severely impaired, and there is no evidence of sufficient cash or working capital to service debt or trade creditors. Without material improvement or additional capital injection, credit risk is very high.

2. Financial Strength:
   The balance sheet shows a deteriorating financial position. Intangible fixed assets (£39,775) represent amortised software development costs but are illiquid and unlikely to cover liabilities. Debtors have fallen from £74,470 to £6,170, suggesting a loss of receivables or client base. Shareholders’ funds have swung from a positive £66,635 in 2023 to a negative £135,818 in 2024, reflecting accumulated losses. Provisions for liabilities increased to £7,557, adding further pressure. The company’s solvency has significantly weakened over the last year.

3. Cash Flow Assessment:
   Cash on hand is negligible at £102, demonstrating extremely limited liquidity. The sharp increase in current liabilities, particularly "other creditors" rising to £156,989, indicates mounting payables potentially overdue. The working capital deficit of £167,936 highlights an inability to cover short-term debts from current assets. There is no indication of positive cash flow generation or sufficient liquid resources to sustain operations or service credit obligations.

4. Monitoring Points:

• Monitor future filings for improvement in cash balances and debtor recovery.
• Watch for reduction in current liabilities and improvement in net current assets.
• Review for capital injections or director loans that could support solvency.
• Track any overdue filings or signs of director distress or insolvency procedures.
• Evaluate turnover and profit trends when income statements become available.