THE POWER INDEX LIMITED

Executive Summary

The Power Index Limited is an early-stage micro business with limited financial resources and working capital deficit. Credit approval is conditional, requiring close monitoring of liquidity improvements and operational cash flow development. The company’s small equity base and short trading history present inherent risk that should be managed through periodic review.

THE POWER INDEX LIMITED - Analysis Report

Company Number: 14998403

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Power Index Limited is a newly incorporated micro private limited company with limited financial history. Its net assets are minimal (£25), with net current liabilities of £2,164, indicating short-term liquidity constraints. While the company is active and compliant with filing requirements, the limited capital base and working capital deficit present some risk. Approval is conditional on ongoing monitoring of liquidity, cash flow improvements, and clarification of the business model’s revenue generation capacity.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£2,576) and current assets (£5,654) primarily likely consisting of cash or receivables. However, current liabilities (£7,818) exceed current assets, resulting in negative working capital. Net assets stand at only £25, reflecting minimal equity invested to date. The company is in its first financial year, which naturally exhibits modest financial strength but requires capital infusion or operational cash flow to improve solvency.

3. Cash Flow Assessment:
   The negative net current assets indicate potential short-term liquidity issues. Without an income statement or cash flow statement, it is difficult to assess operational cash generation. The director’s full control and ownership may facilitate additional capital contributions if necessary. However, the company’s ability to meet creditor demands promptly is uncertain until trading history and cash flows mature.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios in subsequent filings
• Evidence of consistent revenue and positive operating cash flow
• Capital injections or debt restructuring to strengthen equity base
• Stability and experience of management, especially given sole director control
• Timely filing of accounts and confirmation statements to ensure regulatory compliance