80 MOONS LIMITED

Executive Summary

80 Moons Limited exhibits significant financial distress with growing net liabilities and negative working capital, undermining its capacity to service debt. The company’s large long-term lease commitments and lack of operational scale heighten credit risk. Approval of credit facilities is not recommended without substantial improvement in liquidity and financial structure.

80 MOONS LIMITED - Analysis Report

Company Number: 13784026

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: DECLINE
   80 Moons Limited presents a weak credit profile with significant net liabilities and negative working capital. The company’s inability to generate sufficient current assets to cover current liabilities raises concerns about its short-term liquidity and repayment capacity. The substantial lease commitments (£768,000 over 25 years) further strain future cash flows. There is no evidence of profitability or positive cash generation, and the company has no employees, which may limit operational robustness. Given these factors, extending credit facilities would entail high risk.

2. Financial Strength:
   The balance sheet as of 30 April 2024 shows fixed assets of £22,064 but current liabilities of £153,417 against current assets of only £26,072, resulting in net current liabilities of £127,345. Net assets and shareholders’ funds are negative at £110,056, worsening from the prior year’s £91,925 deficit, indicating deteriorating financial health. The company operates as a micro-entity but has large lease obligations that are not reflected as liabilities, suggesting off-balance-sheet risk exposure.

3. Cash Flow Assessment:
   With negative net current assets and no reported employees or operational scale, liquidity is severely constrained. The company’s current assets cover less than 20% of current liabilities, signaling a high risk of cash flow shortfalls. Absence of audit means limited assurance on financial accuracy. The lease commitments are a long-term cash drain, and without evidence of revenue growth or profit, the company’s ability to meet ongoing obligations is questionable.

4. Monitoring Points:

• Monitor improvements in net current assets and net equity position in future filings.
• Watch for any changes in lease agreements or restructuring that might reduce fixed commitments.
• Track any operational developments such as hiring or revenue generation to improve cash flows.
• Review directors’ reports or subsequent filings for indications of turnaround plans or capital injections.