Company Number: 13816700

Analysis Date: 2025-07-29 16:50 UTC

1. Credit Opinion: DECLINE
   Amber Stone Properties Ltd exhibits significant financial distress and limited liquidity, raising concerns about its ability to service debt or meet commercial obligations. The company’s net current liabilities position and negative shareholders’ funds indicate weak financial resilience. Additionally, the stagnant fixed assets and minimal current assets with large current liabilities create a strained working capital situation. Given the company’s micro entity status and lack of profitability or positive equity, extending credit would carry high risk without substantial mitigating factors or guarantees.

2. Financial Strength:
   The balance sheet shows fixed assets at £183,624 consistent over the last three years, but current assets have declined sharply to just £7 in 2023 from £1,263 in 2022. Current liabilities remain high around £132,000, resulting in net current liabilities of approximately £50,000. After accounting for long-term creditors and accruals, net assets are slightly negative at £92, and shareholders’ funds are also negative, reflecting accumulated losses or capital deficiency. This reflects weak capital structure and lack of retained earnings to absorb operating shocks.

3. Cash Flow Assessment:
   The negligible current assets relative to current liabilities indicate poor liquidity and potential cash flow constraints. The company reported zero employees, suggesting limited operational activity or reliance on external service providers. The absence of cash or equivalents and the large short-term creditor balance imply difficulty in meeting short-term obligations without additional capital injections or refinancing. Working capital management appears strained, increasing the risk of payment delays or defaults.

4. Monitoring Points:

• Monitor quarterly or interim cash position and any changes in current asset levels.
• Track movements in current liabilities, especially short-term debt or trade creditors.
• Review any new borrowing or capital injections to improve liquidity.
• Assess any changes in fixed asset valuations or disposals that may affect secured lending.
• Observe management’s strategic plans to improve profitability or capital structure.