ACORP DEVELOPMENT LIMITED

Executive Summary

Acorp Development Limited currently exhibits weak financial health highlighted by negative net assets and working capital, with dormant status indicating minimal or no trading activity. The company lacks demonstrable cash flow and operational substance to support credit facilities. Given these factors, credit approval is not recommended without substantive improvement in financial position and trading performance.

ACORP DEVELOPMENT LIMITED - Analysis Report

Company Number: 13894461

Analysis Date: 2025-07-20 13:09 UTC

1. Credit Opinion: DECLINE
   Acorp Development Limited shows a deteriorating financial position with net liabilities of £200 as of the latest accounts (28 February 2024), compared to net assets of £100 the previous year. The company is classified as dormant with no employees and minimal operating activity, indicating limited cash generation or trading history. The negative net current assets reflect an inability to cover short-term liabilities with available current assets, signaling weak liquidity and increased credit risk. Without a robust trading history or positive cash flows, the company lacks demonstrated capability to service debt or meet commercial obligations.

2. Financial Strength:
   The balance sheet reveals a weak financial footing. At 28 February 2024, current assets stood at merely £100 against current liabilities of £300, resulting in a negative working capital of £200. Total net assets have shifted from positive £100 in 2023 to negative £200 in 2024. Shareholders’ funds mirror this decline. The company’s micro-entity status and dormant account classification suggest minimal operational activity, and no fixed assets or significant capital investment are reported. This fragile balance sheet limits the company’s capacity to absorb financial shocks or fund growth.

3. Cash Flow Assessment:
   The company’s cash position is minimal and insufficient to cover short-term obligations, as evidenced by negative net current assets. There is no indication of operating cash inflows or revenue generation, consistent with dormant status. With no employees and no trading activity, cash generation from operations is currently nonexistent, raising concerns about liquidity. The absence of cash reserves or working capital buffers increases dependency on external funding or shareholder support to meet liabilities.

4. Monitoring Points:

• Monitor future filings for any change from dormant to active trading status and corresponding financial performance improvements.
• Watch for changes in current liabilities and whether short-term debts increase without corresponding asset growth.
• Assess director(s) plans for capital injection or operational commencement that could improve liquidity and net asset position.
• Observe any material changes in company status, such as entering liquidation or administration.