TRINXA LTD

Executive Summary

Trinxa Ltd has shown a marked improvement in its financial position between 2023 and 2024, moving from negative to positive net assets and improving working capital. However, the absence of employees and significant current liabilities pose operational and liquidity concerns. The company maintains compliance with filing requirements, but further examination of asset growth and operational sustainability is recommended before investment consideration.

TRINXA LTD - Analysis Report

Company Number: 14123692

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a significant turnaround from negative net assets and shareholders' funds in 2023 to a positive and improving financial position in 2024. However, given its recent incorporation (2022) and the relatively limited operational history with fluctuating asset and liability positions, caution is warranted. The micro-entity status limits detailed financial disclosures, restricting a deeper risk assessment.

2. Key Concerns:

• Volatility in Financial Position: The company moved from negative net assets (£-5,018) in 2023 to positive net assets (£137,174) in 2024, which may indicate operational or accounting irregularities or a capital injection that needs further clarification.
• High Current Liabilities: Despite the improved net current assets, current liabilities remain substantial (£266,100 in 2024), which could pressure liquidity if not managed carefully.
• Lack of Employees: The average number of employees dropped to zero in 2024 from one in 2023, raising questions about operational capacity and business continuity.

3. Positive Indicators:

• Improved Working Capital: The company shows a healthy net current asset position (£110,712) in 2024, indicating an ability to cover short-term liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Micro-Entity Exemption Used Appropriately: The company complies with micro-entity reporting standards, which is consistent with its size and turnover.

4. Due Diligence Notes:

• Investigate the nature of the significant increase in fixed assets and current assets from 2023 to 2024 to understand the source of the capital and whether it is sustainable.
• Clarify the company’s operational model given the absence of employees in 2024, including reliance on contractors or outsourced services.
• Review detailed cash flow information and creditor composition to assess liquidity risk and timing of liabilities.
• Confirm the directors’ plans for managing current liabilities and sustaining operational activity given the small scale and recent establishment.