INTELICRYPT TACTICAL SOLUTIONS LIMITED
Company number 09935301 · 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.
Credit Analysis: INTELICRYPT TACTICAL SOLUTIONS LIMITED
1. Credit Opinion: CONDITIONAL
Reasoning: The company presents a concerning liquidity position with net current liabilities of £463,634 and a current ratio of just 0.40:1. While total assets of £1.63m and shareholders' funds of £858k provide a capital buffer, the inability to cover short-term obligations from current assets raises significant going concern questions. Any credit facility would require robust security, personal guarantees from directors, and stringent covenant monitoring. Unsecured lending should be declined.
2. Financial Strength
Balance Sheet Composition (2024): - Fixed Assets: £1,322,122 (81% of total assets) - Current Assets: £311,147 (19% of total assets) - Total Liabilities: £774,781 - Shareholders' Funds: £858,488
Equity Trajectory - Persistent Erosion:
| Year | Shareholders' Funds | Annual Change |
|---|---|---|
| 2020 | £866,213 | — |
| 2021 | £865,017 | (£1,196) |
| 2022 | £861,845 | (£3,172) |
| 2023 | £860,078 | (£1,767) |
| 2024 | £858,488 | (£1,590) |
The company has recorded consecutive annual losses since 2020, eroding approximately £7,725 from the equity base. While the loss rate is modest, the persistent nature suggests the business model is not generating sustainable returns.
Leverage Position: - Debt-to-Equity: 0.90:1 — borderline acceptable - However, 100% of liabilities are current, creating acute short-term pressure
Asset Quality Concern: With 81% of assets classified as fixed, the balance sheet is illiquid. For a wireless telecommunications company, these fixed assets may include significant intangible assets (licences, development costs) which are notoriously difficult to realize in a distressed scenario. No breakdown is available due to micro-entity filing.
Share Capital: Only £681 in issued share capital against £858k equity suggests heavy reliance on accumulated historic profits, now being steadily depleted.
3. Cash Flow Assessment
Liquidity Position - Critical:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Current Assets | £311,147 | £311,147 | £0 |
| Current Liabilities | £774,781 | £681,191 | +£93,590 |
| Net Current Assets | (£463,634) | (£370,044) | (£93,590) |
| Current Ratio | 0.40:1 | 0.46:1 | Deteriorating |
The current ratio of 0.40:1 is critically below the 1.0:1 threshold typically required for creditworthiness. The company cannot service its short-term debts from liquid assets.
Working Capital Deficit Worsening: Net current liabilities have increased by 25% year-on-year (£93,590), indicating the company is increasingly reliant on creditor forbearance or fixed asset realizations to meet obligations.
Cash Flow Visibility: As a micro-entity, the company files only a balance sheet. No profit & loss account, cash flow statement, or detailed notes are available. This severely limits assessment of: - Operating cash generation - Revenue trends - Profit margins - Debt service coverage capability
Creditor Dependency: The £774k in current liabilities likely includes trade creditors, accrued expenses, and potentially director loans. The company's survival appears dependent on creditors not demanding payment — a precarious position.
4. Monitoring Points
Immediate Red Flags:
- Net Current Liabilities: Track quarterly if possible; any further deterioration increases insolvency risk
- Creditor Payment Terms: Monitor whether trade creditors are being stretched beyond normal terms
- Fixed Asset Composition: Request breakdown — intangible vs. tangible assets significantly impacts recovery values
Ongoing Monitoring:
- Equity Erosion Rate: Current trajectory suggests shareholders' funds will reach zero in approximately 54 years at current loss rates, but any material acceleration in losses would be critical
- Filing Compliance: Company is currently compliant; any overdue filings would signal distress
- PSC Register: Currently shows only a generic statement — proper identification of persons with significant control is a regulatory requirement and its absence raises governance concerns
- Director Changes: Two directors (Wells and Khan) plus secretary (Wells); any resignations would be material
- Account Filing Category: Company files as micro-entity with minimal disclosure; any upgrade to small/medium category would provide much-needed financial visibility
- Related Party Balances: Determine what portion of the £774k current liabilities represents director loans vs. trade creditors
- Fixed Asset Realizability: Understand nature of £1.32m in fixed assets — if these represent capitalised development costs, they may be overvalued in a liquidation scenario
Covenant Recommendations (if facility approved):
- Minimum current ratio of 0.50:1
- Maximum net current liabilities of £500k
- No further erosion of shareholders' funds below £800k
- Monthly management accounts to be provided