MERLIN360.COM LIMITED
Company number 05496322 · 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: MERLIN360.COM LIMITED
1. Credit Opinion: DECLINE
Reasoning: This company is classified as dormant and has never traded since incorporation in 2005. It has no revenue generation, no operational cash flow, and negligible assets consisting solely of unpaid share capital of £1,198. There is no basis upon which to assess repayment capability or extend commercial credit. The company appears to function as a non-trading shell entity, likely held for intellectual property or group structure purposes by its Canadian parent, Real Time Networks Inc.
2. Financial Strength
Assessment: Negligible
- Net Assets: £1,198 (static since 2018)
- Shareholders' Funds: £1,198
- Asset Composition: Sole asset is "called up share capital not paid" – this represents an amount due from shareholders, not a realisable asset
- No trading assets: No fixed assets, no current assets, no cash reserves reported in recent years
- Historical trajectory: Flatlined since 2018; prior years showed fluctuations between £100-£864, suggesting minimal capital injections only
The balance sheet is essentially dormant. The £1,198 asset is a receivable from shareholders, not an independent resource. There is no financial cushion, no retained earnings, and no operational asset base.
3. Cash Flow Assessment
Assessment: Non-existent
- Revenue: £0 (dormant company, never traded)
- Operating Cash Flow: None
- Working Capital: £0 – no current assets or liabilities recorded
- Liquidity Position: No cash or near-cash assets reported
The company has no trading activity from which to generate cash. It is entirely dependent on its parent entity for any funding requirements. There is no working capital cycle to evaluate and no cash conversion to assess.
4. Monitoring Points
If circumstances change and the company becomes active, the following would require verification:
| Metric | Rationale |
|---|---|
| Commencement of trading | Confirm actual business operations have begun |
| Revenue and profitability | Establish track record before extending facilities |
| Intercompany arrangements | Understand funding relationship with Real Time Networks Inc |
| PSC clarity | Multiple PSCs claim >75% ownership – this overlap needs resolution |
| Cash position | Monitor for actual capital being introduced versus unpaid commitments |
| Filing compliance | Currently compliant, but monitor for any overdue filings |
Additional Risk Factors
- Foreign Ownership: Real Time Networks Inc (Canadian corporation) holds >75% of shares and voting rights. This introduces jurisdictional risk and potential difficulties in enforcement.
- PSC Inconsistency: The PSC register shows overlapping ownership claims (multiple entities/individuals each claiming >75%), which raises governance concerns or suggests data errors requiring clarification.
- Dormant Status Duration: The company has been dormant for approximately 7 years (since at least 2018), suggesting it is maintained for structural rather than commercial purposes.
- Sector: SIC code 62012 (software development) is a sector with typically high R&D costs and uncertain revenue timelines if the company were to become active.