Company Number: 14114747

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: DECLINE
   REAM INTERNATIONAL LIMITED shows persistent negative net assets and net current assets, indicating ongoing financial distress and insolvency at the balance sheet date. Despite some increase in current assets, current liabilities have nearly doubled year-on-year, worsening working capital deficits. The company is a micro-entity with minimal fixed assets and only two employees, limiting operational scale and financial resilience. The negative shareholders' funds reflect cumulative losses, raising concerns about its ability to meet short-term obligations and service any credit facilities. The absence of audit and reliance on micro-entity accounting standards limit transparency. Given these weaknesses and lack of profitability, credit approval is not recommended at this time.

2. Financial Strength:
   The balance sheet reveals total net liabilities of £18,576 as of 31 May 2024, an improvement from £25,312 the previous year but still substantially negative. Fixed assets are negligible at £169, and the company relies heavily on current assets (£44,142) which are insufficient to cover current liabilities (£62,023). The negative net current assets of £17,881 indicate a working capital deficit, implying liquidity stress. Shareholders’ funds are negative, reflecting accumulated losses and a weak equity base, which undermines financial stability and creditor confidence.

3. Cash Flow Assessment:
   Current liabilities significantly exceed current assets by approximately 40%, signaling a potential liquidity crunch. Without sufficient net working capital, the company may struggle with day-to-day cash flow needs, such as paying suppliers or meeting immediate financial commitments. There is no information on cash or equivalents specifically, but the low fixed assets and small employee base suggest limited operational cash generation capacity. The worsening current liabilities position year-on-year further pressures cash flows.

4. Monitoring Points:

• Monitor cash conversion cycle closely, focusing on debtor collections and creditor payment terms to improve liquidity.
• Watch for any further deterioration or improvement in net current assets and net liabilities.
• Review any new filings for signs of capital injection or restructuring that might address negative equity.
• Track profitability trends and cash flow statements (if available) for operational performance changes.
• Assess director and shareholder actions for potential support or risk, noting Steven Armitage’s full control.