THESELORM LTD

Executive Summary

THESELORM LTD is a recently established micro-entity with positive working capital but slight net liabilities due to long-term creditors. While short-term liquidity appears adequate, the company’s financial position is fragile given its startup status and negative equity. Conditional credit approval is recommended pending further financial performance evidence and regular monitoring of liquidity and solvency metrics.

THESELORM LTD - Analysis Report

Company Number: 14685931

Analysis Date: 2025-07-29 14:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THESELORM LTD is a newly incorporated micro-entity with minimal operational history and limited financial data (less than 1 full year). The company shows a small negative net asset position (£950) due to creditor balances exceeding current assets slightly, but overall working capital is positive (£37,009). The director has full control and there are no adverse governance flags. However, the presence of long-term creditors (£37,959) close to the value of current assets suggests some reliance on external funding. Given the limited trading history and early stage, credit approval should be conditional on ongoing monitoring and receipt of updated financials demonstrating improved net asset position and positive cash flow generation.

2. Financial Strength:
   Balance sheet strength is currently weak. Although current assets (£39,459) cover current liabilities (£2,450) comfortably, the company has significant non-current liabilities (£37,959), resulting in net liabilities of £950. This indicates leveraged funding or loans that need to be serviced. Equity is negative, reflecting startup phase losses or initial funding structure. No fixed assets are reported, implying limited tangible collateral. Overall, financial strength is fragile and dependent on the company’s ability to convert receivables to cash and manage creditor payments.

3. Cash Flow Assessment:
   Cash flow details are not explicitly disclosed, but current asset composition suggests cash or near-cash assets are present. Net positive working capital indicates short-term liquidity is sufficient to cover immediate obligations. However, the high level of liabilities due after one year points to future cash outflows that must be planned for. Absence of employees and minimal expenses so far imply low cash burn, but revenue generation and profit margins remain unproven. Close monitoring of cash flow statements and debtor collections is recommended.

4. Monitoring Points:

• Track quarterly cash flow statements to ensure liquidity is maintained and creditor obligations are met timely.
• Monitor changes in net asset position to confirm movement towards positive equity.
• Review any additional borrowing or creditor arrangements that may impact solvency.
• Validate increase in revenue streams and profitability as evidence of sustainable business operations.
• Confirm ongoing compliance with filing deadlines and absence of director conduct issues.