Company Number: 14356829

Analysis Date: 2025-07-29 15:53 UTC

Credit Opinion:
DECLINE. Phyz Factory Ltd. is a very young company incorporated in September 2022, with its latest financials showing negative net current assets and shareholders’ funds deteriorating significantly over two years. The company’s liabilities exceed its current assets by £4,112 as of September 2024, indicating poor liquidity and balance sheet weakness. The small scale of operations (2 employees) and lack of audited accounts, combined with negative equity, suggest limited ability to service debt or absorb financial shocks at this stage. Without evidence of profitability, improved cash flow, or capital injection, credit risk is high.

Financial Strength:
The balance sheet reveals increasing net current liabilities from (£373) in 2023 to (£4,112) in 2024. Shareholders’ funds are negative and have worsened from (£375) to (£4,114), reflecting cumulative losses or insufficient capital. Fixed assets appear negligible or unreported, with current assets mainly consisting of stock (£3,250) and minimal cash (£164). The company’s total liabilities within one year have more than tripled from £2,036 to £7,526, stressing short-term financial pressure. Overall, the financial position is weak, indicating undercapitalization and potential solvency concerns.

Cash Flow Assessment:
Cash on hand is very low (£164) relative to current liabilities (£7,526), suggesting immediate liquidity constraints. The increase in stock from £500 to £3,250 ties up working capital in inventory, which may be difficult to convert quickly to cash. Negative net current assets imply the company may struggle to meet short-term obligations without external funding or improved cash generation. Limited cash flow data is available, but the balance sheet signals poor working capital management and tight liquidity.

Monitoring Points:

• Track quarterly cash flow and working capital changes to assess liquidity improvement.
• Monitor changes in stock levels to ensure inventory is not becoming obsolete or excessive.
• Review any capital injections or shareholder funding to strengthen equity.
• Observe any improvements in profitability or turnover disclosed in interim management reports.
• Watch for timely filing of future accounts and confirmation statements to ensure compliance and transparency.