Q GLOBAL NETWORK LIMITED

Executive Summary

Q Global Network Limited exhibits a weakened financial position with negative net assets and working capital deficits as of the latest accounts. While the company is active and compliant with filings, liquidity concerns and declining cash reserves necessitate cautious credit approval with conditions and active monitoring.

Q GLOBAL NETWORK LIMITED - Analysis Report

Company Number: 13196027

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Q Global Network Limited shows mixed credit signals. The company is active and filing timely accounts, but its latest financials reveal a weakened liquidity and net asset position, moving from positive net current assets and net assets in 2022 to negative in 2023. This raises concerns about short-term payment capability and overall financial stability. Approval could be considered if the borrower provides additional assurances, such as a clear plan to restore working capital, stronger cash flow projections, or additional security/covenants.

2. Financial Strength:
   The company’s balance sheet weakened materially in the latest year ending December 2023. Net current assets declined from a positive £33k in 2022 to negative £94k in 2023, driven by a drop in current assets (notably cash and debtors) and a relatively high level of current liabilities (£2.46m). Net assets turned negative (£-94k), indicating the company’s liabilities exceed its assets. The presence of significant trade and other creditors alongside accrued income suggests ongoing operational commitments. Shareholders’ funds are negative, signaling a deficit position.

3. Cash Flow Assessment:
   Cash at bank reduced from about £752k to £502k, a 33% decline year on year, which tightens liquidity. Debtors also decreased by over £520k, potentially reflecting challenges in collecting receivables or reduced sales volume. Current liabilities remain substantial, with trade creditors and other creditors representing the bulk of short-term obligations. Negative net current assets imply a working capital deficit, increasing risk of payment delays or short-term funding needs. The company’s ability to convert debtors into cash promptly will be critical.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital trends closely to detect further liquidity deterioration.
• Track debtor aging and collection efficiency to ensure receivables do not build up further.
• Review creditor payment patterns to assess if the company is meeting its obligations on time.
• Watch for any changes in ownership or director appointments that might affect governance or strategic direction.
• Confirm any contingent liabilities or off-balance sheet exposures that may impact solvency.
• Assess the company’s operational performance and any external factors impacting the travel agency sector, which can be volatile.

Executive Summary:
Q Global Network Limited’s latest financials show a decline in liquidity and net asset position, with negative working capital and shareholders’ funds. While the company remains operational with recent director appointments, the weakened balance sheet raises concerns about its ability to meet short-term obligations without additional financial support or improved cash flow. Credit approval should be conditional on mitigating factors such as enhanced monitoring, security, or financial covenants.