THEORY TRANSLATED LTD

Executive Summary

Theory Translated Ltd is a newly formed micro-entity with a weak financial position characterized by negative net assets and liquidity shortfalls. The current financials do not support credit approval due to insufficient working capital and shareholder funds. Close monitoring of liquidity improvements and operational cash flow generation is essential before reconsidering credit exposure.

THEORY TRANSLATED LTD - Analysis Report

Company Number: 14761837

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: DECLINE
   Theory Translated Ltd currently demonstrates weak financial capacity to meet its obligations. The company is newly incorporated with only one year of financial history and exhibits net liabilities of £2,482 at the latest reporting date. Negative net current assets of £7,282 indicate liquidity stress, raising concerns about the company's ability to service short-term debts. The absence of positive working capital and net asset base, combined with minimal fixed assets and current assets, suggests insufficient financial resilience for extending credit facilities at this stage.

2. Financial Strength:
   The balance sheet shows a micro-entity with minimal fixed assets (£4,800) and negligible current assets (£182), while current liabilities outweigh assets significantly at £7,464. This results in net current liabilities and net liabilities positions, reflecting negative equity and shareholder funds of £2,482. The financial trajectory cannot be reliably assessed due to the lack of prior year data, but the current figures denote a fragile financial foundation with no retained earnings or reserves to absorb shocks.

3. Cash Flow Assessment:
   The company’s working capital is negative, indicating potential cash flow constraints. Current liabilities are substantial compared to liquid assets, which may impair the company’s ability to meet immediate obligations without additional capital injection or financing. The absence of cash equivalents or receivables data limits precise cash flow analysis, but the reported figures suggest limited liquidity and working capital management challenges.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity position.
• Evidence of generating positive cash flows and profitability in subsequent periods.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Any capital injections or credit facilities secured to improve solvency.
• Performance indicators such as turnover growth, debtor days, and creditor terms.