A S TOOR DEVELOPMENT LTD

Executive Summary

A S TOOR DEVELOPMENT LTD is an early-stage building development company with a weak financial position evidenced by negative net assets and limited cash reserves against substantial liabilities. The company lacks the financial strength and liquidity to comfortably service debt or absorb shocks at this point. Credit approval is not recommended without significant mitigating factors such as external guarantees or capital support. Continuous monitoring of liquidity and trading performance is essential.

A S TOOR DEVELOPMENT LTD - Analysis Report

Company Number: 15092143

Analysis Date: 2025-07-20 15:39 UTC

1. Credit Opinion: DECLINE
   A S TOOR DEVELOPMENT LTD is a newly incorporated private limited company (incorporated August 2023) engaged in building project development. The latest filed accounts (to 31 August 2024) reveal a troubling financial position with net liabilities of £42,725 and shareholders' funds negative by the same amount. Current liabilities exceed cash by a large margin (£45,000 liabilities vs. £2,995 cash). The company’s balance sheet shows limited asset backing to cover short-term and long-term obligations, indicating weak payment capacity and elevated risk of default. Given the negative equity position, absence of tangible fixed assets, and high creditor levels, the company lacks financial resilience to withstand economic or sector downturns at this early stage. No positive trading results or financial improvements are yet evident. Additionally, key directors and significant controllers are individuals with no adverse conduct records, but the financial stewardship so far has resulted in a fragile capital structure. Overall, credit facilities would be high risk without substantial guarantees or additional collateral.

2. Financial Strength:
   The balance sheet is weak. The company reports only £2,995 in current assets (all cash), with current liabilities noted as £45,000 (likely including some long-term creditors). Net current assets are reported as £2,275 but the large creditors falling due after one year (£45,000) worsen the net asset deficit to -£42,725. Share capital is nominal at £400, insufficient to support current liabilities. No fixed assets are evident to provide security or value backing. The negative equity position signals that the company’s liabilities significantly exceed its assets, a common situation for start-ups but one that raises concerns for creditors regarding capital adequacy and solvency.

3. Cash Flow Assessment:
   Liquidity appears severely constrained. Cash balances of £2,995 are minimal relative to liabilities. There is no indication of receivables or stock to provide additional working capital. The company’s ability to meet short-term debts is questionable without external funding or injection of capital. The absence of detailed profit and loss data (exemptions under small companies regime) limits visibility on operational cash generation, but the negative reserves imply losses or expenditures exceeding income since inception. Working capital management will be critical, but current figures suggest potential cash flow strain.

4. Monitoring Points:

• Track quarterly cash flow statements and liquidity ratios closely.
• Monitor any capital injections or shareholder loans to improve net asset position.
• Review subsequent trading results and turnover growth to assess operational viability.
• Watch for any overdue payments or creditor pressures that might indicate distress.
• Confirm ongoing compliance with filing deadlines and any changes in director appointments or PSCs.
• Assess any emerging contracts or project wins that could improve cash inflows.