Company Number: 12874554

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: DECLINE
   WE ARE VERMIN LIMITED demonstrates a weak financial position with persistent negative shareholders' funds and net current liabilities significantly exceeding current assets. The company's inability to generate positive equity or working capital casts serious doubt on its capacity to service any new or existing debt obligations. Given the ongoing losses and lack of financial improvement over multiple years, extending credit would pose a high risk.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial strength. Shareholders' funds worsened from -£7,020 in 2020 to -£23,450 in 2024, indicating accumulated losses and erosion of equity capital. Current liabilities (~£25,754) far exceed current assets (£2,304), resulting in net current liabilities of approximately -£23,450, reflecting poor liquidity and a likely inability to meet short-term obligations. This micro-entity has not made significant asset acquisitions or improvements and remains undercapitalized.

3. Cash Flow Assessment:
   The company’s cash flow position is critically weak, as evidenced by very low current assets and high current liabilities. The absence of positive working capital suggests insufficient liquidity to cover immediate operational costs or creditor payments without external financing or equity injections. The small asset base and continuous negative net assets imply that cash generation from operations is inadequate or negative.

4. Monitoring Points:

• Monitor changes in current liabilities and efforts to reduce short-term debts.
• Track improvements in cash balances and working capital management.
• Watch for any capital injections or restructuring plans from directors.
• Assess profitability trends if profit and loss data become available.
• Review director and management actions to address the negative equity position.