INNASOL LTD
Company number 07459506 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
This is a comprehensive financial health assessment for INNASOL LTD, conducted using the diagnostic framework of a medical check-up. The patient is a going concern, but the underlying vitals reveal a deeply chronic condition that requires immediate and sustained intensive care.
Financial Health Score: D- (Critical Condition with Stabilising Factors)
Explanation: The company is technically balance sheet insolvent, meaning its total liabilities exceed its total assets. Its survival is entirely dependent on a single external factor—the continued forbearance of its parent company. The severe drop in cash reserves represents an acute risk of a liquidity crisis. The only factor preventing a failing grade (F) is a clear trend of improving net equity over the last four years, suggesting the core trading operations are moving in the right direction, even if they are not yet strong enough to support the patient independently.
1. Key Vital Signs & Symptoms Analysis
Vital Sign: Net Equity (Shareholders’ Funds) — -£906,123 - Interpretation: This is the patient’s primary chronic condition. The company owes nearly a million pounds more to its creditors than the total value of everything it owns. This is a classic symptom of balance sheet insolvency. - Trend: Improving. The deficit has shrunk from -£2.07m in 2020 to -£0.91m in 2024. This suggests the business is generating trading profits, but the historical losses are deep.
Vital Sign: Cash Reserves — £85,704 - Interpretation: This is an acute and alarming symptom. Cash has dropped by 82% from £483,777 in just one year. The company is bleeding cash. While £85k in the bank is better than an overdraft, this burn rate is unsustainable. - Symptom: The cash was largely converted into debtors (up £300k) and fixed assets (up £61k). The patient is trading, but the cash conversion cycle is too slow.
Vital Sign: Current Ratio (Liquidity Test) — 0.56:1 - Interpretation: A healthy ratio is above 1.5:1. INNASOL has only 56 pence in current assets (cash, debtors, stock) for every £1 it must pay within the next year. This is a serious liquidity squeeze. - Symptom: The company is highly dependent on short-term credit and the goodwill of its suppliers and group companies to keep operating.
Vital Sign: Parent Company Dependency (Life Support) - Interpretation: This is the most critical finding. The company owes its parent group **£1.45