POLARISX LTD

Executive Summary

Polarisx Ltd is an early-stage micro-entity with negative net assets and working capital deficits, reflecting typical startup financial fragility. The company currently lacks the financial strength and liquidity to support credit facilities, warranting a decline decision at this stage. Close monitoring of operational progress, cash flow improvement, and capital support is advised before reconsideration.

POLARISX LTD - Analysis Report

Company Number: 14810962

Analysis Date: 2025-07-29 13:54 UTC

1. Credit Opinion: DECLINE
   Polarisx Ltd is a newly incorporated micro-entity with only one financial year reported. The company shows net current liabilities of £1,668 and negative net assets of the same amount, indicating it is currently undercapitalized. The absence of employees and minimal current assets (£1,879) against creditors due within one year (£3,547) suggests limited operational scale and weak liquidity. There is no indication of revenue or profit generation, and the company is in its startup phase with inherent risks. Given these factors, the company currently lacks the financial strength and cash flow capacity to service debt or credit facilities without additional capital injection or operational progress.

2. Financial Strength:
   The balance sheet reveals negative shareholders’ funds (£-1,668), reflecting an initial deficit or startup losses. Current liabilities exceed current assets, resulting in negative working capital. Fixed assets are not disclosed, implying the company holds little to no long-term assets. Overall, the financial position is fragile, typical of a startup, with no cushion to absorb financial stress or economic downturns.

3. Cash Flow Assessment:
   Current assets, presumably cash or equivalents, are minimal at £1,879, insufficient to cover current liabilities of £3,547. Net current liabilities of £1,668 indicate potential liquidity challenges. Without evidence of operating cash inflows or capital injections, the company may face difficulties meeting short-term obligations. The absence of employees and limited financial data also suggest no operational cash generation yet.

4. Monitoring Points:

• Monitor future annual accounts for evidence of revenue growth and profitability to improve net assets and working capital.
• Track cash flow trends closely, especially operating cash inflows versus creditors' payments.
• Watch for new capital injections or shareholder loans that may bolster liquidity and solvency.
• Review director conduct and business development activities to assess management’s ability to stabilize and grow the business.
• Confirm timely filing of future accounts and confirmation statements to ensure compliance and transparency.