Company Number: 13011610

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: DECLINE
   Total Active Hub Ltd exhibits significant financial stress as evidenced by persistent and growing net current liabilities and shareholders' deficit. The company’s current liabilities exceed current assets by £66,798 as of the latest accounts, indicating poor short-term liquidity and working capital management. Negative shareholders' funds of £64,138 illustrate an erosion of equity, which raises concerns about solvency and the ability to meet obligations from internal resources. While the company is active and filings are up-to-date, the financial trajectory shows worsening financial position year-on-year with current liabilities more than doubling since 2022. Without substantial improvement in liquidity, profitability, or external capital injection, the business appears unable to reliably service debt or sustain operations under economic stress.

2. Financial Strength:
   The balance sheet reflects weak financial health. Fixed tangible assets are minimal (£2,662), while current liabilities stand at £113,801 against current assets of £47,003, leading to a net working capital deficit. The company’s equity base is negative, with accumulated losses reflected in the profit and loss reserve. The rise in creditors, especially “other creditors” nearly doubling to £97,364, suggests increasing reliance on short-term credit or deferred payments. The minimal issued share capital (£100 nominal, stated as £2 in accounts) provides no meaningful buffer. Overall, the company is undercapitalized with insufficient asset coverage of liabilities.

3. Cash Flow Assessment:
   Although cash on hand improved to £33,852 from £3,863 in 2022, this is still insufficient relative to current liabilities. The large creditor balances imply possible stretched supplier payments or accrued expenses. Debtors have decreased to £12,045, but receivables alone are inadequate to cover immediate payables. Negative net current assets and shareholders’ deficit indicate working capital constraints and potential liquidity risk. The absence of an income statement limits detailed cash generation analysis, but accrued losses and negative equity imply operating cash flow is weak or negative. The company’s ability to generate free cash flow to service debt or invest is doubtful.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio should be monitored closely to detect any further deterioration or improvement in working capital.
• Creditor aging and payment terms: To evaluate if payables are being deferred unsustainably.
• Cash flow from operations: When available, to assess operational cash generation and sustainability.
• Equity injections or debt restructuring: Any new capital or refinancing would be critical to improve solvency.
• Management actions to reduce costs or grow revenues to reverse losses.
• Director conduct and related party transactions, given the large “other creditors” balance, to ensure no undue risk.