TWOPOINTZERO LIMITED

Executive Summary

Twopointzero Limited shows a significant decline in financial health with negative equity and working capital at its latest year end. The company faces liquidity challenges and appears unable to meet short-term obligations reliably. Without clear signs of improved cash flow or capital support, extending credit would carry high risk.

TWOPOINTZERO LIMITED - Analysis Report

Company Number: 13136111

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion:
   DECLINE. The company’s most recent financial year end (31 January 2025) shows a deteriorated financial position with net current liabilities of £23 and negative shareholders' funds of £33. This indicates the company is insolvent on a balance sheet basis. The negative equity and working capital position raise significant concerns about its ability to meet short-term obligations and service any additional debt. The lack of profitability data limits insight into operational performance, but the sharp decline in net assets from £199 (2024) to negative £23 (2025) suggests worsening financial health.

2. Financial Strength:
   Twopointzero Limited has experienced a severe decline in financial strength over the last year. Current assets dropped from £379 to £199, mainly due to cash decreasing from £369 to £189. Current liabilities increased from £180 to £222, pushing net current assets into negative territory. Shareholders’ funds moved from a positive £199 to a negative £33, indicating accumulated losses or write-downs eroding equity. This positions the company as financially weak, with limited buffer to absorb shocks or access additional credit without restructuring.

3. Cash Flow Assessment:
   Cash on hand has halved in the last year, from £369 to £189, with current liabilities exceeding current assets. This negative working capital situation suggests potential liquidity pressure. The company’s ability to convert debtors (£10) into cash to cover liabilities is limited. Without a positive cash flow from operations or external capital injection, the company risks defaulting on short-term obligations. The low cash reserves relative to liabilities indicate poor liquidity and insufficient working capital, which is critical for ongoing operational viability.

4. Monitoring Points:

• Monitor cash balances and movement in current liabilities closely to watch for liquidity stress.
• Track any changes in shareholders’ funds and net asset position for signs of recovery or further deterioration.
• Review any updates on profitability or income statements when available to assess operational sustainability.
• Observe director actions and any restructuring or capital raising efforts.
• Watch for any overdue filings or late payments indicating financial distress.