PROCUREMENT HACKS LIMITED

Executive Summary

Procurement Hacks Limited demonstrates weak financial health with significant negative working capital and minimal equity, indicating limited ability to service debt or meet commercial obligations. The company’s financial trajectory is declining, and liquidity stress is evident. Given these factors, credit approval is not recommended without substantial financial improvement or capital support.

PROCUREMENT HACKS LIMITED - Analysis Report

Company Number: 13208262

Analysis Date: 2025-07-29 13:43 UTC

1. Credit Opinion: DECLINE

Procurement Hacks Limited presents a weak credit profile characterized by persistent net current liabilities and a minimal net asset base. Despite being a micro-entity, the company shows increasing current liabilities with decreasing current assets over the last financial year, leading to a negative working capital position of £10,543 as of 31 March 2024. This indicates potential liquidity stress and an inability to meet short-term obligations comfortably. The negligible shareholder funds (£9) further suggest limited financial buffer. The company’s financial trajectory is declining, with current assets shrinking sharply from £21,641 in 2023 to £3,036 in 2024, while current liabilities remain elevated. There is no evidence of profitability or cash flow improvement, raising concerns about the company’s ability to service debt or honor commercial agreements. Without significant operational turnaround or capital injection, the business appears vulnerable to economic downturns or unexpected expenses. Management quality cannot be fully assessed, but the financial results suggest limited financial stewardship or capital support to date.

2. Financial Strength:

The balance sheet is fragile. Fixed assets increased to £10,552 (up from £1,259), but this is insufficient to offset the heavy current liabilities (£13,579). The net current liability position deteriorated markedly from £1,208 negative in 2023 to £10,543 negative in 2024, signaling worsening short-term liquidity. Shareholders’ funds are negligible at £9, essentially implying the company is trading at near zero equity. There is no retained earnings or reserves to absorb losses or provide financial flexibility. Overall, the company’s financial structure is weak with no meaningful equity base.

3. Cash Flow Assessment:

The company’s cash and equivalents appear very limited, as indicated by the sharp drop in current assets. Negative working capital suggests potential cash flow difficulties in meeting immediate liabilities. The absence of detailed profit and loss data precludes a full cash flow analysis, but the balance sheet position implies ongoing operational cash outflows or delayed receivables collection. The company may rely on external funding or director support to sustain operations. Working capital management appears poor.

4. Monitoring Points:

• Monitor quarterly or interim liquidity and cash flow metrics to detect any improvement or further deterioration.
• Watch for changes in current liabilities, especially short-term creditor levels and any overdue payments.
• Track any capital injections or shareholder loans that could improve equity and liquidity.
• Review the company’s filing of future annual accounts and confirmation statements for timely compliance and updated financial performance.
• Assess any operational changes or strategic initiatives that could enhance profitability and cash generation.