TRUSTED SUPPLY LTD

Executive Summary

Trusted Supply Ltd is currently financially distressed with negative net assets and working capital deficits, indicating inability to meet short-term liabilities from existing resources. The company’s limited cash reserves and lack of fixed assets reduce financial resilience and creditworthiness. Without significant improvement in liquidity or capital structure, extending credit would be high risk.

TRUSTED SUPPLY LTD - Analysis Report

Company Number: 13243887

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: DECLINE
   Trusted Supply Ltd shows significant financial distress as of the 2024 year-end. The balance sheet reveals net current liabilities of £15,375 and negative shareholders’ funds of £15,375. This indicates the company is insolvent on a going-concern basis, with current liabilities exceeding current assets by a large margin. The absence of fixed assets and limited cash (£995) severely restricts liquidity. Such a position suggests a high risk that the company cannot meet debt obligations without external capital injection or restructuring. Given the negative net assets and working capital deficit, the company is not currently creditworthy for additional lending.

2. Financial Strength:
   The company has no fixed assets and minimal share capital (£100), with an accumulated deficit reflected in retained earnings of (£15,475). The deterioration from positive net assets of £1 in 2023 to negative £15,375 in 2024 signals operational losses or increased liabilities. The company’s total current liabilities (£29,450) are more than double its current assets (£14,075), highlighting poor financial resilience. The company remains small in scale with only 2 employees and limited operational history since incorporation in 2021, which increases risk due to limited track record.

3. Cash Flow Assessment:
   Cash on hand is minimal at £995, with trade debtors of £13,080 comprising the majority of current assets. However, current liabilities are substantial at £29,450, including significant other creditors (£24,990). The net current liability position implies working capital constraints and potential cash flow difficulties in meeting short-term obligations. There is no evidence of strong cash generation or liquid reserves. The company’s reliance on receivables to fund liabilities creates vulnerability to collection delays or bad debts.

4. Monitoring Points:

• Improvement in net current assets and reduction of current liabilities
• Cash flow from operations and debtor collection efficiency
• Changes in retained earnings reflecting profitability or loss mitigation
• Any new capital injections or restructuring measures to restore balance sheet integrity
• Stability in management and director appointments, noting the recent appointment in 2025