RUNWIZ LTD

Executive Summary

Runwiz Ltd exhibits weak financial health with negative net assets and severe liquidity constraints, relying on director support to continue operations. The company’s deteriorating working capital and lack of profitability present significant credit risk. Lending exposure is not advised without substantial financial turnaround or external guarantees.

RUNWIZ LTD - Analysis Report

Company Number: 14120138

Analysis Date: 2025-07-29 14:57 UTC

1. Credit Opinion: DECLINE
   Runwiz Ltd presents a weak credit profile with persistent net liabilities and negative working capital over the last two years. The company’s net current liabilities have nearly doubled from £50,952 in 2023 to £97,811 in 2024, indicating increasing short-term liquidity pressure. Additionally, net assets are negative and have deteriorated from -£1,268 to -£5,367. Despite directors’ support assurances, the financials show insufficient internal resources to meet current obligations without external backing. The company is in the early stage of its lifecycle (incorporated 2022) and operates in software development, which can be capital intensive and competitive. This exposes the business to heightened risk without demonstrated profitability or cash flow stability. Therefore, an unsecured credit facility or significant lending is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets have increased from £50,434 to £93,244, possibly reflecting investment in software development or equipment. However, current assets have decreased slightly from £6,968 to £5,203 while current liabilities have escalated sharply from £57,920 to £103,014. This results in a severely negative net working capital position, undermining liquidity. Negative shareholders’ funds indicate accumulated losses and no retained earnings cushion. The company is reliant on director support to maintain going concern status, indicating limited financial autonomy. Overall, the balance sheet shows poor solvency and weak capital structure.

3. Cash Flow Assessment:
   The reported current assets of just over £5k against current liabilities exceeding £103k highlight acute liquidity stress. The company likely depends heavily on short-term financing or capital injections from shareholders/directors. The negative net current assets suggest inability to meet short-term obligations without refinancing or additional funding. No cash flow statements are provided, but the working capital trend implies negative operating cash flow or significant cash burn. The directors’ statement about continuing support for 12 months is critical but implies dependence on external liquidity rather than operational cash generation.

4. Monitoring Points:

• Monitor quarterly management accounts for improvement or further deterioration in working capital and cash balances.
• Watch for any delays or defaults in supplier payments or creditor actions due to current liabilities pressure.
• Track director funding commitments and any external financing arrangements.
• Review progress towards generating positive operating cash flow and profitability.
• Assess any changes in business model or operational scale that might impact financial risk profile.
• Keep an eye on any impending overdue filings or regulatory issues as early warning indicators.