SENSING SPACE LTD

Executive Summary

Sensing Space Ltd shows signs of financial recovery with reduced net liabilities but remains in a fragile position due to negative working capital and shareholders’ funds. The company’s ability to meet short-term obligations is limited, warranting cautious credit extension with conditions and ongoing monitoring. Improvement trends are encouraging but require validation through future financial updates and operational cash flow clarity.

SENSING SPACE LTD - Analysis Report

Company Number: 13023529

Analysis Date: 2025-07-20 15:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sensing Space Ltd is an active micro private limited company with a small team (2 employees). The latest financials show a continuing net liability position, though significantly improved from the prior year. Negative net current assets (£-1,495) and net liabilities (£-870) indicate the company has more short-term liabilities than current assets, but this is a marked improvement from the prior year’s deeper negative working capital and net liabilities. The company’s ability to meet short-term obligations is currently stretched but improving. Given the company operates in educational support services and has stable directors, credit could be extended conditionally with close monitoring and possibly secured or limited facilities to mitigate risk.

2. Financial Strength:

• Shareholders’ funds remain negative at £-870 but improved substantially from £-18,537 in 2022.
• Fixed assets are minimal (£625), indicating limited tangible collateral value.
• Current liabilities (£29,604) slightly exceed current assets (£28,109), resulting in a small working capital deficit.
• The balance sheet shows gradual recovery from prior losses but still reflects a fragile financial position with no equity buffer.
• The company’s micro-entity status limits disclosure, and no profit and loss data is available for a fuller assessment.

3. Cash Flow Assessment:

• Current assets primarily include cash and debtors, but the slight negative net current assets suggest tight liquidity.
• Negative working capital means the company may rely on supplier credit or external financing to meet immediate obligations.
• With only two employees and presumably low fixed costs, cash burn might be manageable, but operational cash flow details are unavailable.
• Absence of profit and loss accounts restricts insight into operating cash generation.

4. Monitoring Points:

• Watch improvements in net current assets and net liabilities in subsequent filings.
• Monitor timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Track any increases in fixed or intangible assets that might strengthen collateral.
• Review directors’ management actions aimed at turning profitability and cash flow positive.
• Observe any changes in credit terms with suppliers or debt restructuring efforts to ease liquidity pressures.