THE IMPACT DIVIDEND LTD.

Executive Summary

THE IMPACT DIVIDEND LTD. is a newly incorporated micro-entity with limited trading history and currently exhibits negative net assets and working capital deficits. The company’s financial position and liquidity profile indicate an inability to service debt or support credit facilities at this stage. Credit approval is not recommended until the company demonstrates improved financial stability and operational cash flow.

THE IMPACT DIVIDEND LTD. - Analysis Report

Company Number: 16171293

Analysis Date: 2025-07-19 12:07 UTC

1. Credit Opinion: DECLINE. The company, THE IMPACT DIVIDEND LTD., has only been trading for a very short period (just under 3 months) and its financials show a negative net asset position (£-2,641) with net current liabilities of £3,400. This indicates the company is currently insolvent on a balance sheet basis. There is no trading history or profitability demonstrated to support repayment capability. The lack of employees and minimal fixed assets further limit operational capacity. Given these factors and the micro entity size, the risk of extending credit is high.

2. Financial Strength: The balance sheet as at 31 March 2025 shows total fixed assets of only £759 and current assets of £3,809, but current liabilities exceed these at £7,209. This results in net current liabilities of £3,400 and net assets of £2,641 negative. Shareholders’ funds are also negative at £2,641, reflecting accumulated losses or initial expenses exceeding capital. The company is undercapitalized with no tangible buffer to absorb shocks. This weak financial position suggests poor financial resilience.

3. Cash Flow Assessment: No detailed cash flow statements are provided, but the working capital deficit implies liquidity stress. Current liabilities substantially exceed current assets, signaling potential difficulty in meeting short-term obligations. The absence of employees also suggests no revenue-generating operations yet, which raises concerns about cash inflows. The company is likely reliant on additional capital injections to sustain operations in the short term.

4. Monitoring Points:

• Improved working capital position and reduction of current liabilities.
• Evidence of revenue generation and positive operating cash flow.
• Capital injections or equity funding to restore positive net assets.
• Timely filing of future accounts and confirmation statements.
• Management’s plans to achieve operational and financial viability.