Company Number: 14557673

Analysis Date: 2025-07-29 20:54 UTC

1. Credit Opinion: DECLINE
   Aduki Ltd presents a weak credit profile. Despite being a micro-entity with minimal operations, its financials reveal persistent negative net assets and significant working capital deficits. The company’s net current liabilities have nearly doubled year-over-year, indicating worsening short-term liquidity pressure. Additionally, the company carries long-term creditor obligations with no clear evidence of revenue generation or profitability. Given these factors, the company lacks the financial strength to service additional credit without a substantial turnaround or capital injection. Approval of credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets increasing from £289,929 in 2024 to £583,886 in 2025, suggesting investment in long-term assets. However, current assets remain minimal (£37,900 in 2025) compared to very high current liabilities (£616,393 in 2025), resulting in a negative net working capital of -£578,493. The company’s net assets remain negative at -£107, an improvement from -£3,220 the previous year but still below zero. The capital structure is fragile, with shareholders' funds in deficit, indicating accumulated losses or undercapitalization. The presence of creditors falling due after one year (£5,500) adds to overall liabilities. This weak financial position undermines the company's solvency and creditworthiness.

3. Cash Flow Assessment:
   The company’s current liabilities greatly exceed current assets, implying significant liquidity strain. The absence of employees and minimal current assets suggest limited operational activity and cash inflows. Negative working capital signals potential difficulties meeting short-term obligations without external financing or asset liquidation. There is no indication of cash flow from operations or profitability to support debt service. The lack of audit and reliance on micro-entity provisions limit transparency. Overall, cash flow capacity appears insufficient, raising concerns over the company’s ability to maintain ongoing liquidity.

4. Monitoring Points:

• Track changes in net current assets and working capital to detect improvement or further deterioration.
• Monitor creditor ageing and any defaults on short-term obligations.
• Review any capital injections or restructuring plans to strengthen equity.
• Watch for filing of next accounts and confirmation statements to assess timely compliance.
• Scrutinize the director’s disclosures and any changes in business model or revenue streams.