SYNAPSE CONSULTING SERVICES LIMITED

Executive Summary

Synapse Consulting Services Limited shows weak financial health with negative net current assets and shareholders' funds over three years, indicating poor liquidity and capital deficiency. The company is unable to cover its short-term liabilities and lacks operational scale or profitability, leading to a high credit risk. Credit facilities should be declined at this stage, with future monitoring focused on financial strengthening and cash flow improvements.

SYNAPSE CONSULTING SERVICES LIMITED - Analysis Report

Company Number: 14615630

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: DECLINE
   Synapse Consulting Services Limited presents significant credit risk at this stage. The company shows consistent net current liabilities and negative shareholders' funds over its first three years, indicating ongoing capital deficiency. Lack of current assets and inability to cover short-term liabilities (working capital deficit) suggest poor liquidity and an inability to meet debt obligations. As a micro-entity with no employees currently and minimal operational scale, the company has limited financial resilience and no track record of profitability or cash generation to support lending.

2. Financial Strength:
   The balance sheet is weak, with net current liabilities worsening from £239 in 2023 and 2024 to £479 in 2025. Shareholders' funds are negative and declining, reflecting accumulated losses or capital injections that have not yet resulted in positive equity. Total assets are minimal, and no fixed assets are reported, highlighting lack of tangible collateral value. This points to a fragile financial structure incapable of absorbing shocks.

3. Cash Flow Assessment:
   Current assets are effectively zero or negligible, while current liabilities have nearly doubled in two years. This negative working capital position implies an inability to cover short-term debts from liquid resources. The absence of cash or equivalents and no indication of operating cash inflows raises concerns over liquidity management. The director’s advances being repaid suggest some personal funding, but this is not a sustainable or scalable source of liquidity.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds.
• Evidence of operating cash inflows or profitability in future filings.
• Any change in director funding or external financing to support operations.
• Filing timeliness and compliance to avoid regulatory risks.
• Development of assets or contracts that could improve creditworthiness.

Executive Summary:
Synapse Consulting Services Limited remains in an early development phase with negative equity and insufficient liquidity to meet liabilities, presenting a high credit risk. Without operational progress or capital strengthening, the company lacks the financial capacity to service debt or sustain credit facilities. Monitoring future financial improvements and cash flow generation will be critical before reconsidering credit support.