SOURCEMETA LTD

Executive Summary

SOURCEMETA LTD is currently financially distressed with negative net assets and insufficient working capital to meet liabilities. The company lacks operational scale and tangible assets, raising significant credit risk. Without improvements in liquidity or capital structure, the company is unlikely to support new credit facilities.

SOURCEMETA LTD - Analysis Report

Company Number: 14162311

Analysis Date: 2025-07-29 19:34 UTC

1. Credit Opinion: DECLINE
   SOURCEMETA LTD exhibits a negative net asset position of -£11,055 for the year ending 30 June 2025, indicating that current liabilities exceed current assets significantly. This implies poor financial health and an inability to cover short-term obligations. The company has no fixed assets and no employees, suggesting minimal operational capacity. The persistent negative working capital and lack of tangible assets increase the risk of default on any credit extended. Without evidence of incoming cash flows or capital injection, the company does not demonstrate the ability to service debt or meet commercial commitments reliably.

2. Financial Strength:
   The balance sheet shows a micro-entity with deteriorating financial strength over time. Net current assets are negative and worsening from -£9,703 in 2024 to -£11,055 in 2025. The company’s shareholders’ funds are also negative, confirming an insolvent position on a net asset basis. Absence of fixed assets means no collateral value. Overall, the financial structure is weak, reflecting either accumulated losses or liabilities exceeding asset base.

3. Cash Flow Assessment:
   With only £837 in current assets and liabilities of £11,892 due within one year, liquidity is severely constrained. There is no reported cash or equivalents available to meet short-term debts. The company’s inability to generate positive working capital suggests significant cash flow problems. The absence of employees may indicate limited operational activity, which could further impair revenue generation and cash inflows.

4. Monitoring Points:

• Monitor quarterly cash flow statements if available to assess liquidity changes.
• Track any capital injections or shareholder loans to improve net asset position.
• Watch for changes in creditor terms or outstanding liabilities management.
• Review any operational developments or employee appointments indicating business scaling.