Company Number: 13601770

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: DECLINE
   Soapnscent Limited presents a weak financial profile with net liabilities of £3,158 and negative working capital as of the latest accounts to 30/09/2024. The company’s balance sheet shows minimal current assets (£17) against current liabilities (£2,275), indicating poor liquidity and an inability to meet short-term obligations from operating assets. The lack of positive net assets and the net current liabilities position suggest the company is not currently capable of servicing any additional debt or credit facilities without significant improvement in financial performance or capital injection.

2. Financial Strength:
   The company is categorized as micro-entity and operates in the manufacture of soap and detergents. The balance sheet reveals negative net assets and net current liabilities consistent across the past two reported years, indicating no improvement in capital structure or solvency. The company’s equity is negative (-£3,158), which signals accumulated losses or undercapitalization. With only one employee and minimal asset base, the company appears to be in an early or precarious stage of development with limited financial resources.

3. Cash Flow Assessment:
   Current assets are extremely low (£17), which severely limits liquidity. The current liabilities (£2,275) exceed current assets by a wide margin, resulting in a net current liability of £2,258. This means the company has insufficient liquid resources to cover short-term debts or payables, indicating potential cash flow difficulties. No evidence of retained earnings or reserves to buffer cash flow volatility is visible.

4. Monitoring Points:

• Watch for any capital injections or equity funding to improve net asset position.
• Monitor cash flow statements or bank balances if available to assess liquidity trends.
• Keep track of any overdue payments or supplier defaults to assess covenant compliance risk.
• Review management commentary or strategic plans for turnaround or growth initiatives that may improve financial health.