PHOENIX TECHNOLOGIES LIMITED

Executive Summary

Phoenix Technologies Limited is a start-up micro-entity with negative net assets and insufficient working capital, indicating limited capacity to meet credit obligations. The company’s financial position and liquidity do not currently support credit extension. Close monitoring of capital increases, trading performance, and liquidity improvements is recommended before reconsidering credit facilities.

PHOENIX TECHNOLOGIES LIMITED - Analysis Report

Company Number: 15055806

Analysis Date: 2025-07-20 13:28 UTC

1. Credit Opinion: DECLINE
   Phoenix Technologies Limited is a newly incorporated micro-entity with minimal financial history and an adverse net asset position as of its first reported year. The balance sheet shows net liabilities of £1,838 and current liabilities (£3,000) exceeding current assets (£1,162), indicating an inability to cover short-term obligations from existing assets. The absence of fixed assets and no employees suggest a startup phase with limited operational capacity or revenue generation. Given these factors, the company currently lacks financial strength and liquidity to service debt or credit facilities reliably. Without evidence of forthcoming capital injection or trading progress, extending credit poses high risk.

2. Financial Strength:
   The company’s balance sheet is weak. Net current liabilities of £1,838 mean working capital is negative after accounting for creditors, despite a small current asset base primarily of cash or equivalents. No fixed assets or retained earnings exist to bolster equity. Shareholders’ funds are negative, reflecting accumulated losses or initial setup costs exceeding contributed capital. As a micro-entity in the software development sector, it is common to start with minimal assets, but the negative net asset position is a credit concern. The sole shareholder/director’s control does not mitigate financial weakness.

3. Cash Flow Assessment:
   Current assets of £1,162 against current liabilities of £3,000 point to tight liquidity and insufficient working capital to meet short-term debts. The company’s lack of employees and fixed assets suggests limited operational activity so far, likely resulting in minimal cash inflows. Without further information on cash flow from operations or external funding, the company’s ability to generate or access cash to meet obligations is questionable. This liquidity gap could impair the company’s ability to respond to financial stress or creditor demands.

4. Monitoring Points:

• Monitor subsequent filings for improved asset base and positive net assets.
• Track any capital injections or shareholder loans to strengthen liquidity.
• Review turnover and profit figures once available to assess trading viability.
• Observe director’s financial conduct and whether additional directors or staff are appointed to support growth.
• Watch for timely filing compliance and any indications of financial distress or restructuring.