THE INTELLIGENT LOGGIST SYSTEM (TILS) LTD

Executive Summary

The Intelligent Loggist System (TILS) Ltd is a newly incorporated micro-entity with persistent negative net assets and weak liquidity, indicating poor financial resilience and an inability to service debt. Given the lack of profitability and negative equity, the company currently poses a high credit risk. Close monitoring of liquidity improvements and cash flow generation is essential before reconsidering credit facilities.

THE INTELLIGENT LOGGIST SYSTEM (TILS) LTD - Analysis Report

Company Number: 14736770

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: DECLINE

The company shows persistent net liabilities and negative shareholders' funds over the last two years, indicating an ongoing capital deficiency. Current liabilities exceed current assets, resulting in negative net current assets in prior years and only a marginal improvement recently. The business is in its early stage (incorporated 2023) and operates in software development, which can be high risk without established revenue streams. The director is the sole shareholder, which concentrates control but also risk. There is no evidence of profitability or positive cash flow to service debt. Overall, the financial position is weak with limited liquidity and negative equity, raising significant concerns over the ability to repay loans or meet commercial obligations.

2. Financial Strength:

• Net assets declined from -£3,079 in 2024 to -£4,022 in 2025.
• Current assets increased slightly from £720 to £1,101 but remain insufficient against current liabilities (£4,823 in 2025).
• The company's balance sheet reflects a capital deficiency and reliance on external financing or director funding.
• No fixed assets reported; all assets appear current in nature, limiting collateral value.
• Negative equity indicates cumulative losses or shareholder withdrawals.

3. Cash Flow Assessment:

• Current liabilities significantly exceed current assets, indicating potential liquidity stress.
• Net current assets turned positive in 2025 (£1,101) but this figure seems inconsistent with reported current liabilities (£4,823) and may be a reporting anomaly or limited to a specific classification.
• The company employs only one person and shows no indication of operational cash generation.
• The absence of profit and loss data limits cash flow visibility but negative net assets suggest cash burn.
• No indication of cash reserves or credit facilities to cover liabilities.

4. Monitoring Points:

• Track improvements in net asset position and reduction in net liabilities.
• Monitor current ratio and working capital to ensure liquidity improves.
• Review incoming cash flows and profitability starting from next financial period.
• Observe director funding or external financing arrangements.
• Watch for overdue filings or changes in company status signaling financial distress.