SPECTRUM ARRAY LTD

Executive Summary

Spectrum Array Ltd is a micro-entity with persistent liquidity and solvency challenges, reflected in negative working capital and minimal equity. The company’s financial position does not currently support additional credit exposure. Close monitoring of liquidity improvements and capital strengthening is essential before reconsidering credit facilities.

SPECTRUM ARRAY LTD - Analysis Report

Company Number: 14123101

Analysis Date: 2025-07-29 12:40 UTC

1. Credit Opinion: DECLINE
   Spectrum Array Ltd demonstrates weak financial health with persistent net current liabilities and minimal shareholders' funds. The company’s inability to maintain positive working capital over its first two years of operation indicates limited capacity to service debt or absorb financial shocks. Given its micro-sized scale, lack of profitability data, and negative liquidity position, extending credit would pose a high risk without substantial mitigating factors or guarantees.

2. Financial Strength:
   The balance sheet shows fixed assets around £3,600 (2024) and current assets of approximately £2,973, offset by current liabilities of £6,223, resulting in net current liabilities of £3,250. Shareholders' funds remain very low at £350, barely above zero and indicating limited equity buffer. The company has not improved its net current asset position since 2023, signaling ongoing financial strain and a fragile capital structure.

3. Cash Flow Assessment:
   Negative net current assets indicate working capital deficiency and potential cash flow constraints. The company’s current liabilities exceed current assets by a substantial margin, suggesting it may struggle to meet short-term obligations without external financing or additional capital injections. Absence of cash flow statements limits detailed analysis, but the balance sheet position implies liquidity risk.

4. Monitoring Points:

• Improvement in net current assets and working capital ratio
• Increase in shareholders’ funds and equity base
• Evidence of positive operating cash flow or profitability in future accounts
• Timely filing of accounts and confirmation statements to monitor compliance
• Any changes in director or ownership structure that may impact financial stewardship