PURE PREDICTIONS LIMITED
Company number 06668997 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: PURE PREDICTIONS LIMITED
1. Credit Opinion: CONDITIONAL
Reasoning: The company presents a robust balance sheet with strong liquidity and minimal leverage. Net assets have grown 43% year-on-year to £311,349, and current liabilities have been reduced by 69% from £116,827 to £36,198. However, micro-entity accounts provide no visibility on revenue, profitability, or cash generation. Without confirmed income streams, debt serviceability cannot be fully assessed. Approval is conditional on receiving management accounts demonstrating trading performance and cash flow adequacy.
2. Financial Strength
Balance Sheet Position: Strong
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £348,547 | £335,365 | +3.9% |
| Total Liabilities | £36,198 | £116,827 | -69.0% |
| Net Assets | £311,349 | £217,538 | +43.1% |
| Shareholders' Funds | £311,349 | £217,538 | +43.1% |
- Leverage is minimal: Liabilities represent just 10.4% of total assets, down from 34.8% in 2023
- Equity base is solid: Six consecutive years of positive net assets with an upward trajectory
- Capitalisation is thin: Share capital stands at only £2, meaning retained profits comprise virtually all equity
- Fixed assets are declining: Down from £14,260 to £6,820, suggesting limited reinvestment or ongoing depreciation without replacement
Concern: The dramatic reduction in current liabilities (from £116,827 to £36,198) warrants explanation. This could reflect genuine debt repayment, liability reclassification, or creditor write-backs. Without a P&L or notes beyond employee numbers, the driver is unclear.
3. Cash Flow Assessment
Liquidity Position: Very Strong
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £341,727 | £321,105 |
| Current Liabilities | £36,198 | £116,827 |
| Net Current Assets | £305,529 | £204,278 |
| Current Ratio | 9.44x | 2.75x |
- Working capital is ample: Net current assets of £305,529 provide substantial headroom
- Current ratio of 9.44x is exceptionally strong — the company can meet short-term obligations nearly ten times over
- Long-term liabilities are negligible: Only £1,000 falling due after one year
- Composition risk: Without a breakdown of current assets (cash vs. debtors vs. stock), we cannot confirm liquidity quality. A significant debtor book could overstate realisable value
Cash generation concern: Micro-entity accounts do not disclose turnover or profit. Net asset growth of £93,811 implies retained profit or capital contribution, but the source cannot be verified from filed accounts alone. The business may be asset-rich but revenue-light.
4. Monitoring Points
| Metric | Risk Level | Action Required |
|---|---|---|
| Revenue & Profitability | High | Obtain management accounts to confirm trading income and margins |
| Current Asset Composition | Medium | Request aged debtor report; assess cash vs. trade debtors |
| Parent Company Exposure | Medium | Invumedia Group Limited holds >75% shares and voting rights — assess parent's financial health and intercompany positions |
| Fixed Asset Decline | Low | Monitor whether business is under-investing in operational capacity |
| Liability Reduction Driver | Medium | Clarify reason for £80,629 reduction in current liabilities |
| Sector Risk | Medium | SIC 63990 (other information services) is broad — understand specific business model and competitive position |
| Filing Compliance | Low | Accounts and confirmation statements are current; no overdue filings |
| Director History | Low | No disqualification records identified for Spencer Ross Tramm |
Conditions for Approval: 1. Provision of up-to-date management accounts showing turnover, gross margin, and net profit 2. Bank statements demonstrating regular trading activity and cash generation 3. Disclosure of any intercompany balances with Invumedia Group Limited 4. Personal guarantee from Mr. Spencer Ross Tramm where facility exceeds £50,000