SQUARICLE GROUP LIMITED

Executive Summary

Squaricle Group Limited faces critical financial weaknesses with negative net assets and very limited liquidity, indicating high credit risk. The company shows no signs of recovery or operational scale, making it unsuitable for new credit facilities at this time. Close monitoring of liquidity improvements and any capital restructuring is recommended before reconsidering credit exposure.

SQUARICLE GROUP LIMITED - Analysis Report

Company Number: 12647309

Analysis Date: 2025-07-20 18:46 UTC

1. Credit Opinion: DECLINE
   Squaricle Group Limited exhibits significant financial distress, evidenced by persistent and substantial negative net assets (£-61,073 as of 31 March 2024). The company’s liabilities far exceed its current assets, and it shows no improvement over the past three years. The absence of employees and minimal current assets (£397) limit operational capacity and cash generation potential. The large creditor balance (£60,030 due after one year) indicates reliance on external funding that lacks clear repayment sources. Given these factors, the company is not currently in a position to meet additional credit obligations.

2. Financial Strength:
   The balance sheet reveals a weak financial position with net liabilities of over £61k and shareholders’ funds negative by the same amount. The company’s fixed assets are not disclosed, indicating no tangible asset base to support borrowing. The unchanged creditor figure over multiple years suggests either long-term financing or unresolved debts, which heightens credit risk. The minimal share capital (£1) and no equity buffer further undermine financial stability.

3. Cash Flow Assessment:
   Current assets at £397 against current liabilities of £60,030 highlight severe liquidity constraints. The company has no net working capital to cover short-term obligations, and no employees listed, suggesting limited operational activity or scale. Without positive cash flows or working capital, the ability to service debt or finance operations internally is doubtful. No profit and loss figures are available, but the negative reserves imply ongoing losses or capital erosion.

4. Monitoring Points:

• Changes in net current assets and creditor balances to assess shifts in liquidity and debt structure.
• Filing of full accounts including P&L to understand profitability trends.
• Any capital injections or restructuring efforts to improve equity position.
• Operational activity indicators such as employee count or revenue disclosures.
• Director actions or external funding arrangements that could impact credit risk.