Credit Analysis: REVOLUT LTD

1. Credit Opinion: CONDITIONAL

Reasoning: Based on the 2014 financial data provided, the company presents significant credit risk with negative net assets of (£121,106), net current liabilities of (£151,219), and minimal cash reserves of £16,789. The going concern status at year-end 2014 was dependent on a post-balance sheet equity raise of £1,503,664. However, this analysis is severely constrained by the age and limitations of the filed data—the 2014 accounts represent the company's first trading period when it was a pre-revenue startup. Revolut has since transformed into a major fintech with 40+ million customers globally. Any credit decision would require current audited financial statements reflecting the company's present scale and profitability.

2. Financial Strength

Balance Sheet Position (2014): WEAK

• Insolvent position: Liabilities exceeded assets by £121,106 at year-end 2014
• Minimal equity base: Only £1 of called-up share capital, with accumulated losses of (£121,107)
• Intangible assets: £24,427 in capitalised development costs (not yet amortised as platform was not in use)—these represent speculative value
• Tangible asset base: Negligible at £5,686 (net of depreciation)
• Capital dependency: The company was entirely dependent on shareholder funding, with a post-balance sheet equity injection of £1,503,664 required to support ongoing operations

Current Structure: The PSC register shows Revolut Group Holdings Ltd owns >75% of shares, indicating the entity is now part of a larger group structure. This parent company support would be relevant to any contemporary credit assessment, but group financials are not provided.

3. Cash Flow Assessment

Liquidity Position: CRITICALLY WEAK

• Severe liquidity shortfall: Current liabilities exceeded current assets by £151,219—a current ratio of 0.13x indicates the company could not meet short-term obligations from existing resources
• Minimal cash runway: £16,789 in cash against £173,631 in current liabilities provides virtually no buffer
• Working capital deficit: The company was operating with a significant working capital deficit, entirely reliant on creditor forbearance and ongoing equity injections
• Debtors: Only £5,623 owed to the company, providing no meaningful liquidity source

Note on Data Limitations: These figures reflect a pre-commercial startup phase. Revolut's current liquidity profile would be fundamentally different given its scale of operations, banking licence, and significant venture capital backing received since 2015.

4. Monitoring Points