Company Number: 13403095

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: DECLINE
   ThermalEDGE Solutions Ltd shows severe financial distress with substantial and increasing net liabilities (£129k negative net assets in 2024 vs £69k in 2023). Its current liabilities far exceed current assets, indicating acute liquidity problems and inability to meet short-term obligations. The absence of turnover or profitability data coupled with no employees suggests minimal operating activity or revenue generation. The company’s negative working capital and recurring losses raise significant concerns over its capacity to service any new credit facilities. Without clear evidence of imminent turnaround or external financial support, the risk of default is elevated.

2. Financial Strength:
   The balance sheet reveals a weak financial footing. Fixed assets stand at £12.4k, which is small relative to creditor obligations of £141.7k total (current and long-term). The net current assets position is heavily negative at -£134.8k, showing reliance on creditor funding to support operations. Shareholders’ funds are deeply negative (-£129.3k), reflecting accumulated losses and erosion of equity. The company’s capital base is minimal (£1 share capital), and the worsening net liabilities trend over the last two years indicates deteriorating financial health.

3. Cash Flow Assessment:
   Cash on hand is minimal at £70, with no debtors reported in 2024 (previous year had £532). The liquidity ratio is severely impaired due to current liabilities of £134.9k versus negligible current assets, indicating inability to cover immediate liabilities from liquid resources. The company’s working capital deficit highlights cash flow difficulties, likely requiring external funding or restructuring to continue operations. The absence of employees suggests no payroll obligations currently, but operational cash inflows appear insufficient to meet creditor demands.

4. Monitoring Points:

• Liquidity position and management of current liabilities
• Progress on improving revenue streams or cash inflows
• Changes in creditor structure or negotiations on debt repayment terms
• Any capital injections or external funding arrangements
• Director and management actions addressing financial distress
• Timely filing of accounts and confirmation statements to monitor compliance and ongoing status