Company Number: 13736936

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: DECLINE
   Redeployable Limited’s financials reveal significant deterioration in its financial position over the last year. The company moved from positive net assets and shareholder funds in 2022 (£1,740) to negative net assets of (£10,254) and shareholders’ funds of (£291,602) in 2023. The sharp increase in creditors and director loans, coupled with negative working capital, signals liquidity stress. These factors raise concerns about the company’s ability to meet current obligations and sustain operations without additional capital injection. Given these weaknesses and absence of audit assurance, credit risk is elevated and approval for new lending or credit facilities is not recommended at this time.

2. Financial Strength:

• Fixed assets increased modestly from £16,172 to £21,871, mostly from intangible assets amortised heavily (£43,137 charge in 2023) indicating investment in intangibles but also significant write-downs.
• Current assets grew from £34,367 to £72,530, driven mainly by cash (£26,984 to £50,330) and debtors (£7,383 to £22,200), but current liabilities surged from £23,169 to £78,395, resulting in negative net current assets of (£5,865).
• Long-term creditors remained stable (~£26,000).
• Shareholders' funds swung from positive to deeply negative, indicating accumulated losses or equity erosion, likely due to the high losses reflected in the P&L reserve.
  Overall, the balance sheet shows signs of financial stress, with net liabilities and negative equity undermining solvency.

3. Cash Flow Assessment:

• Cash balance increased, which is positive, but the increase in current liabilities and negative working capital implies tight liquidity.
• The company relies on director loans (£18,251 within current liabilities) and deferred income (£35,222) suggesting cash flow management depends on short-term funding and advance receipts.
• Trade creditors have decreased significantly, possibly indicating payment of suppliers, but increased deferred income and other creditors may mask true operational cash flow strain.
• Lack of positive net current assets is a red flag for short-term liquidity.
  Without detailed cash flow statements, the reliance on director loans and deferred income is concerning for ongoing cash flow sustainability.

4. Monitoring Points:

• Watch net current assets and liquidity ratios closely, especially current ratio and quick ratio, to gauge short-term payment capacity.
• Monitor changes in director loans and deferred income balances, as these represent non-traditional funding sources.
• Review subsequent filings for any capital injections or restructuring efforts to improve equity and solvency.
• Track revenue growth and operating cash flows to assess if the company can generate sustainable profits and positive cash flows to offset losses.
• Review management’s plans for returning to profitability and reducing liabilities to mitigate credit risk.