PERSPICACITY LABS LTD

Executive Summary

Perspicacity Labs Ltd presents a weak financial profile characterized by negative equity and insufficient liquidity to meet short-term liabilities. The company’s minimal asset base and lack of employees limit its capacity to service debt, leading to a recommendation to decline credit facilities at this stage. Close monitoring of financial improvements or restructuring efforts is advised before reconsidering credit exposure.

PERSPICACITY LABS LTD - Analysis Report

Company Number: 12724675

Analysis Date: 2025-07-29 20:32 UTC

1. Credit Opinion: DECLINE
   Perspicacity Labs Ltd shows significant negative net assets (£-266 in 2024) and liabilities exceeding assets by a similar margin, indicating insolvency from an accounting perspective. The company’s current liabilities surpass its current assets, and there is no evidence of cash or liquid resources to cover short-term obligations. The firm’s micro-entity status with zero employees and minimal balance sheet size suggests a very small operation, likely founder-run. The absence of positive working capital and negative equity signals a high risk of default on any credit facility.

2. Financial Strength:
   The balance sheet reveals zero fixed assets and negligible current assets (£12) against current liabilities (£278) in 2024, worsening from previous years. Shareholders’ funds are negative and deteriorating (£-266 in 2024 vs £-224 in 2023). This suggests accumulated losses or possibly loans classified as long-term creditors. The company’s financial position is fragile, with no visible buffer to absorb losses or fluctuations in cash flow.

3. Cash Flow Assessment:
   No employees and minimal current assets indicate limited operational activity. The accounts do not disclose cash balances explicitly but £12 of current assets is nominal and insufficient to service liabilities of £278 due within a year. The company’s inability to generate positive net current assets or liquidity raises concerns about meeting payment obligations as they fall due.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities to evaluate any improvement in liquidity.
• Review any future filings for evidence of capital injections or debt restructuring.
• Observe if there are any new directors or PSC disclosures that might indicate changes in governance or ownership.
• Track any overdue filings or arrears in statutory obligations as potential early warning signs.