PINNACLE T LTD

Executive Summary

Pinnacle T Ltd is currently in a financially vulnerable position, showing negative net assets and insufficient liquidity to cover short-term liabilities. Given these factors and the company’s short operating history, credit approval is not recommended at this stage. Close monitoring of cash flow improvements and equity injections would be necessary before reconsidering credit facilities.

PINNACLE T LTD - Analysis Report

Company Number: 14461134

Analysis Date: 2025-07-29 17:28 UTC

1. Credit Opinion: DECLINE
   Pinnacle T Ltd demonstrates a weak financial position with negative net assets and shareholders' funds as of the latest accounts. The company has significant current liabilities (£45,240) exceeding its current assets (£12,290), resulting in a net current liability position of £25,452. This indicates an inability to cover short-term obligations from liquid assets. The negative equity position (-£13,611) suggests accumulated losses or insufficient capital, raising concerns about the company’s capacity to service debt or meet commercial commitments reliably.

2. Financial Strength:
   The balance sheet reveals poor financial strength. While fixed assets stand at £18,030, these are overshadowed by high current liabilities and accruals (£45,240 + £6,189), leading to a net liabilities position. The company has no retained earnings or reserves to buffer financial shocks. The micro-entity status and limited operating history (incorporated in late 2022) mean there is little historical performance data, but the current trend as of March 2024 is negative.

3. Cash Flow Assessment:
   Current liabilities significantly exceed current assets, indicating working capital deficiency and potential liquidity issues. Negative net current assets imply the company struggles to cover immediate debts and operational expenses from its short-term assets. Without evidence of external funding or improved cash generation, the risk of payment delays or default is elevated.

4. Monitoring Points:

• Improvement or deterioration in net current assets and liquidity ratios
• Movement in shareholders’ funds and net asset position with subsequent filings
• Timely settlement of creditors and accruals
• Cash flow from operations and any new financing arrangements
• Changes in management or ownership that might strengthen financial controls