Company Number: 13453446

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Inspira Technology Ltd is a micro private company with relatively modest asset size and limited employee base. Its accounts show a negative working capital position increasing over the last year, indicating liquidity strain. Shareholders funds have declined from £88.6k in 2023 to £66.4k in 2024, suggesting some erosion of net worth. The company’s short trading history (since 2021) and negative net current assets raise concerns about its ability to meet short-term liabilities without additional funding or improved cash flows. However, fixed assets have increased, reflecting some investment in long-term capacity. The single director and 100% ownership by Xxxxxx Xxxxxxxxname shown to subscribers indicate concentrated control but also potential for quick decision-making. Credit should be extended with caution, requiring monitoring of liquidity and possibly secured or short-term facilities only.

2. Financial Strength: The balance sheet shows a net asset base of £66,386 at June 2024, down from £88,581 at June 2023. Fixed assets increased from £100,583 to £148,403, reflecting capital investment in the business. However, current liabilities are £146,478 against current assets of £64,461, resulting in negative working capital of £82,017, a significant deterioration from the prior year. The erosion of shareholders funds and negative net current assets indicate that the company is relying heavily on short-term creditors or other liabilities to finance operations. This weak liquidity position undermines financial resilience and increases risk in an economic downturn or if cash inflows falter.

3. Cash Flow Assessment: The negative net current assets and growing current liabilities highlight a potential cash flow concern. The company’s ability to pay debts as they fall due is questionable without external financing or improved operational cash flow. There is no filed income statement to assess profitability or cash generation, but the increase in current liabilities and reduced current assets suggest operational cash flow pressures. Working capital management should be closely scrutinized, and any credit facility should ideally have controls or covenants linked to liquidity metrics.

4. Monitoring Points:

• Regular review of monthly cash flow statements to detect liquidity issues early.
• Monitoring changes in current liabilities and receivables turnover to assess working capital efficiency.
• Tracking capital expenditure versus cash reserves to avoid overextension.
• Director’s engagement and any changes in ownership or management.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Profitability trends once income statements become available, to assess operational viability.