SIGMASAFE SOLUTIONS LTD

Executive Summary

Sigmasafe Solutions Ltd is a start-up with a weak initial financial position, negative working capital, and insufficient liquidity to cover short-term liabilities. The absence of trading history and minimal equity present high credit risk. Credit approval is therefore declined pending evidence of operational cash flow improvements and strengthened financial footing.

SIGMASAFE SOLUTIONS LTD - Analysis Report

Company Number: 14941971

Analysis Date: 2025-07-20 15:39 UTC

1. Credit Opinion: DECLINE
   Sigmasafe Solutions Ltd is a newly incorporated private limited company with less than one full year of trading history. The latest unaudited abridged accounts to 30 June 2024 show a net liability position (£202 deficit in net assets) and negative working capital (£6,244 net current liabilities). The company’s cash balance (£2,824) is insufficient to cover current liabilities (£9,068), indicating liquidity stress. Without evidence of revenue growth, profitability, or external financial support, the risk of default on credit facilities is high. The absence of employees and reliance on director funding or capital injection further increases risk. Given these factors, approval of credit at this stage is not advisable.

2. Financial Strength:
   The balance sheet reflects a weak financial position for a company less than one year old. Fixed assets are modest (£6,042), split between intangible assets (goodwill amortised over 5 years) and tangible assets (computer equipment). The negative shareholders’ funds (£205) and net liabilities position highlight initial losses or investment not yet generating returns. The company’s share capital is nominal (£3), underscoring minimal equity buffer. The company’s classification under SIC code 85590 (Other education not elsewhere classified) suggests a service-oriented business with likely limited physical asset requirements but dependency on cash flow generation that is not yet demonstrated.

3. Cash Flow Assessment:
   Current assets are primarily cash (£2,824) with no reported debtors or stock, implying very limited operating activity or early stage pre-revenue status. Current liabilities of £9,068 exceed cash by over three times, leading to significant working capital deficit. This negative liquidity position poses short-term repayment risk. Without detailed income statement or cash flow statements (not filed due to small company exemption), the ability to generate positive operating cash flow cannot be confirmed. The company must demonstrate improved cash management or secure external funding to meet obligations.

4. Monitoring Points:

• Monitor subsequent trading performance and filing of full accounts including income statement and cash flow for signs of revenue growth and profitability.
• Track working capital trends and liquidity improvements, especially cash balances relative to short-term liabilities.
• Review any director or shareholder loans or capital injections that may support operations.
• Observe filing of confirmation statements and regulatory compliance to ensure ongoing business operations.
• Assess director conduct and governance practices as the principal director holds significant voting and appointment powers.