POESIA SPECIAL PROJECTS LTD

Executive Summary

Poesia Special Projects Ltd is currently financially distressed with negative net current assets and shareholders’ funds, indicating a weakened ability to meet short-term liabilities and sustain operations. The company’s liquidity position is precarious, with no cash and declining receivables, signaling potential cash flow difficulties. Given these factors, credit facilities should be declined until there is clear evidence of financial recovery or strengthened liquidity.

POESIA SPECIAL PROJECTS LTD - Analysis Report

Company Number: 13156029

Analysis Date: 2025-07-29 20:52 UTC

1. Credit Opinion: DECLINE
   Poesia Special Projects Ltd has demonstrated a significant deterioration in its financial position as of the most recent accounts (year ended 31 January 2025). The company moved from positive net current assets (£2,021 in 2024) to a net current liability position of £4,030 in 2025, indicating liquidity stress. Shareholders' funds are negative at £4,230, reflecting accumulated losses eroding equity. The absence of cash on hand and a decline in debtors further weaken its ability to service debts. Given the negative working capital, deficient equity base, and no indication of profitability or cash generation, the company currently lacks the financial strength to support additional credit facilities. Approval of new credit is not recommended without substantial evidence of turnaround or external financial support.

2. Financial Strength:
   The balance sheet shows a worsening trend: total assets less current liabilities dropped from a positive £2,021 in 2024 to a negative £4,030 in 2025. The company's fixed assets are not disclosed, but current assets are primarily debtors, which have halved year-on-year from £28,080 to £13,339. Cash reserves have fallen to zero. Current liabilities remain high at £17,369, including director loans and taxes, creating a strained liquidity position. The negative shareholders' funds indicate insolvency from an accounting perspective, limiting the company’s buffer against losses or economic shocks.

3. Cash Flow Assessment:
   The company's liquidity is weak with no cash as of 2025 and net current liabilities of £4,030. The reduction in debtors suggests either collection issues or lower sales, which could impair cash inflows. High current liabilities, including tax and director accounts, must be met within the year, further pressuring working capital. Lack of employees and absence of disclosed profitability figures make it difficult to assess operational cash generation, but the data implies poor cash flow management or business contraction. Short-term liquidity risk is significant without immediate improvement or external financing.

4. Monitoring Points:

• Monitor quarterly cash flow statements and debtor collections closely.
• Watch for any additional director loans or capital injections to shore up liquidity.
• Track liabilities due, especially taxes and director accounts, for timely settlement to avoid enforcement actions.
• Review management actions addressing the negative equity and working capital deficit.
• Assess operational performance and new contracts that might improve cash inflows and profitability.