THE EMPLOYEE EXPERIENCE SPACE LIMITED

Executive Summary

The Employee Experience Space Limited is an early-stage company showing initial improvement in financial position with a slight positive net asset balance after two years of losses. However, its balance sheet remains fragile, heavily reliant on director loans and trade creditors, with tight liquidity conditions. Credit extension should be cautious and conditional on ongoing monitoring of cash flow, debtor management, and profitability trends to mitigate risks.

THE EMPLOYEE EXPERIENCE SPACE LIMITED - Analysis Report

Company Number: 14357829

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Employee Experience Space Limited is a very young company incorporated in late 2022, operating in management consultancy, web portals, and publishing activities. Its latest accounts (year ended 30 September 2024) show a marginally positive net asset position (£35) following two previous years of net liabilities around £6,900. The company has improved working capital from a negative £6,900 to a small surplus of £35, which signals some operational progress but minimal financial buffer. Directors’ loan accounts remain significant (£10,551), indicating reliance on director funding. Given the early stage and limited financial strength, credit should be extended cautiously with conditions such as regular monitoring and limits on exposure until the company demonstrates sustained profitability and stronger liquidity.

2. Financial Strength: Weak but Improving
   The balance sheet reveals very modest total assets with no fixed assets and current assets of £26,233 mainly comprising debtors (£17,071) and cash (£9,162). Current liabilities are nearly equal at £26,198, resulting in negligible net current assets of £35. The shareholder funds turned positive this year at £35 from previous negative equity. The absence of fixed assets and low equity base limits collateral value and financial resilience. The company’s capital structure relies heavily on directors' loans and trade creditors, reflecting dependency on related party funding. Overall, the financial strength is fragile but showing early signs of recovery.

3. Cash Flow Assessment: Tight Liquidity
   Cash at bank decreased from £12,625 in 2023 to £9,162 in 2024, indicating cash consumption despite improved net assets. Trade debtors increased substantially to £16,200, which may pressure cash flow if collection periods are extended. Current liabilities remain high, including significant directors’ loan accounts (£10,551) and trade creditors (£1,333). The company must carefully manage working capital cycles and cash inflows to avoid liquidity strains. There is no indication of external borrowing, which can be positive in terms of debt service but also suggests limited access to finance.

4. Monitoring Points:

• Profitability trends and cash flow from operations to ensure sustainable debt servicing capacity.
• Debtor aging and collection efficiency to prevent cash flow bottlenecks.
• Directors’ loan account balances and any changes in related party funding.
• Timely filing of accounts and confirmation statements to maintain statutory compliance.
• Any changes in share capital or financing arrangements that affect leverage or equity position.