TRIANGLE INVITE LTD

Executive Summary

Triangle Invite Ltd presents a weak financial position with sustained negative net assets and working capital deficits, relying heavily on cash balances that have declined recently. Despite reported profits, the company lacks tangible assets and has high short-term liabilities, raising concerns on its ability to service debts. Credit facilities are not recommended without substantial improvement in liquidity and equity strength.

TRIANGLE INVITE LTD - Analysis Report

Company Number: 13501849

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: DECLINE
   Triangle Invite Ltd shows a persistent negative net asset position and net current liabilities over the last three years, indicating financial weakness and insolvency risk. The company has no fixed assets and relies entirely on cash balances which have decreased year over year. Current liabilities remain substantial (£3.2M in 2024) with no bank loans or overdrafts, but significant other creditors, suggesting potential pressure from suppliers or related parties. Despite reported profits before tax (£85k in 2024), these do not translate into improved equity or liquidity. The single director and sole shareholder with full control may limit governance oversight. Overall, the company’s financial structure and working capital position are fragile and do not support additional credit without strong mitigating factors.

2. Financial Strength:
   The balance sheet reveals total net liabilities of £46,653 as of July 2024, a marked improvement from prior years but still negative. The absence of fixed assets means the company holds no tangible collateral. Cash assets declined to £3.19M from £3.86M, while current liabilities remain high at £3.24M, resulting in a negative working capital of £46,653. Shareholders’ funds are negative, reflecting accumulated losses despite reported profits in the P&L. The company meets small company criteria but operates with a weak equity base, which constrains financial resilience.

3. Cash Flow Assessment:
   Cash on hand is the primary current asset but has declined by approximately £670k year-on-year. No details on trade creditors or accruals suggest the £3.24M creditors are likely related party or deferred income balances but this requires verification. Negative net current assets highlight a liquidity strain. There are no bank borrowings, which limits leverage but also indicates limited external funding support. The company’s capacity to meet short-term obligations from operating cash flow appears marginal, warranting caution.

4. Monitoring Points:

• Movement in cash balances and ability to restore positive working capital
• Changes in creditor composition and any overdue liabilities
• Profitability trends and conversion of profits into retained earnings to rebuild equity
• Director’s related party transactions or financial support arrangements
• Any changes in company status or filing compliance