Company Number: 15218544

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: DECLINE. SORT SURANCE LTD is a newly incorporated private limited company with only one financial year of accounts. The company shows a negative net asset position of £1,702 and net current liabilities, indicating it is currently insolvent on a balance sheet basis. The negative debtor figure (-£100) and current liabilities exceeding current assets suggest working capital insufficiency. The company is in a high-risk position for credit extension as it lacks financial strength and proven cash flow generation. Additionally, the director resigned mid-2025, replaced by a new director, which may indicate management changes requiring monitoring. Given these factors, the company is not yet demonstrating the stability or financial resilience necessary to support credit facilities.

2. Financial Strength: The balance sheet reveals net assets of -£1,702 with total current liabilities (£14,085) exceeding current assets (£12,383). There are no fixed assets reported. Shareholders’ funds are negative, reflecting accumulated losses or initial capital shortfall. The company’s equity base is weak, and there is no retained profit or reserves to absorb future losses or fund growth. This weak financial position compromises the company’s ability to absorb shocks or invest in operations without external funding.

3. Cash Flow Assessment: Cash at bank is £12,483 but is not sufficient to cover short-term liabilities of £14,085, giving a negative net current asset position of £1,702. The negative debtor figure is unusual and may reflect accounting adjustments or data issues, but overall working capital is negative, indicating liquidity stress. There is no evidence of operating cash flow or profitability yet, as the company has only recently commenced trading. The absence of historical cash flow trends makes it difficult to assess future liquidity, increasing risk for credit providers.

4. Monitoring Points:

• Monitor future filings for improved net asset position and profitability.
• Watch for changes in management and director appointments, especially given the recent director resignation.
• Review payment performance and creditor days once trading is established.
• Track working capital improvements and cash flow generation in subsequent periods.
• Assess any capital injections or external funding that might strengthen the balance sheet.