PATHFINDER TECHNOLOGY LIMITED

Executive Summary

Pathfinder Technology Limited is a micro-entity with weak financial health characterized by negative net assets and working capital deficits. The company’s limited liquidity and ongoing losses undermine its ability to service debt, leading to a credit decline recommendation. Close monitoring of future financial improvements and liquidity changes is essential before reconsidering credit exposure.

PATHFINDER TECHNOLOGY LIMITED - Analysis Report

Company Number: 13003100

Analysis Date: 2025-07-20 14:40 UTC

1. Credit Opinion: DECLINE
   Pathfinder Technology Limited demonstrates a negative net asset position of £3,700 as of 30 November 2023, despite a modest improvement from the previous year's deficit of £20,933. The company is a micro-entity with minimal equity and persistent working capital deficiencies (£20,496 negative net current assets). These factors indicate weak financial resilience and limited capacity to service debt. Without evidence of positive cash flow or profitability, the risk of default is elevated. The company’s single director/shareholder control does not offset the evident financial weaknesses. Credit exposure is not recommended at this stage.

2. Financial Strength:
   The company holds fixed assets of approximately £63k, but current assets are very low at £12k, resulting in negative working capital of £20.5k due to current liabilities exceeding current assets. Long-term liabilities of £46k further pressure net equity, resulting in a net liability position. The balance sheet reflects ongoing losses accumulated in reserves, indicating persistent operational or financing challenges. The micro-entity's capital structure is thin (£1 share capital), and shareholders’ funds remain negative.

3. Cash Flow Assessment:
   Limited current assets and significant current liabilities raise concerns about liquidity and the ability to meet short-term obligations. The company’s average employee count is one, suggesting minimal operating scale. No audit or detailed cash flow statements are provided, but the persistent negative working capital and net liabilities imply cash flow stress. The company may rely heavily on director financing or external support to sustain operations, which poses a risk for independent credit repayment capability.

4. Monitoring Points:

• Monitor updates to net current assets and net asset position in future filings to assess if losses continue or reverse.
• Watch for changes in creditor terms or restructuring of liabilities that could improve liquidity.
• Review any new director or shareholder loans or capital injections that impact financial strength.
• Track operational performance indicators or profitability improvements in next financial year.