Company Number: SC687737

Analysis Date: 2025-07-29 16:30 UTC

1. Credit Opinion: DECLINE
   SOAR SOCIAL LTD exhibits a concerning deterioration in liquidity and working capital over the latest reporting period ending 30 June 2024. The sharp decline in current assets from £6,012 to £2, coupled with a reduction in net current assets from a positive £3,795 to a negative £418, signals a liquidity squeeze. This impairs the company’s ability to service short-term obligations reliably. The absence of long-term liabilities is positive but does not offset the weakened short-term financial position. Additionally, the company’s micro-entity scale and limited operating history (incorporated in 2021) introduce higher risk due to lack of financial track record and scale.

2. Financial Strength:
   While net assets remain positive at £2,736, this figure has halved compared to the prior year’s £5,442, indicating erosion of equity. Fixed assets increased modestly but remain minimal, and current liabilities have reduced significantly from £2,217 to £420; however, this is mainly due to current assets collapsing to near nil. The company’s share capital is nominal (£1), and retained earnings appear limited. Overall, the balance sheet reveals a fragile financial foundation with limited buffer to absorb shocks.

3. Cash Flow Assessment:
   The dramatic drop in current assets, primarily cash or equivalents, from £6,012 to just £2 suggests severe cash flow challenges or potential misclassification. The negative net working capital in 2024 means short-term liabilities exceed current assets, which is a red flag for liquidity management. The company’s single-employee operation and small scale limit its ability to generate cash internally. Without detailed cash flow statements, this deterioration implies potential difficulty meeting immediate financial commitments.

4. Monitoring Points:

• Monitor quarterly cash flow and current asset balances closely to detect further liquidity deterioration.
• Watch for any overdue payments or increasing creditor pressure.
• Track any changes in operational scale or revenue generation that could improve liquidity.
• Review director’s management actions to restore working capital and improve financial stability.
• Confirm timely filing of future accounts and returns to maintain regulatory compliance.