ANCHOR SERVICED ACCOMMODATION LTD

Executive Summary

Anchor Serviced Accommodation Ltd, a newly incorporated micro-entity, currently exhibits significant financial weakness with negative net assets and a large working capital deficit. Its liquidity position and lack of trading history present substantial risk for credit exposure. Without clear evidence of improved cash generation or capital support, extending credit facilities is not advised at this stage.

ANCHOR SERVICED ACCOMMODATION LTD - Analysis Report

Company Number: 14692168

Analysis Date: 2025-07-29 12:08 UTC

1. Credit Opinion: DECLINE
   Anchor Serviced Accommodation Ltd shows significant financial weakness in its first year of trading. The company’s net liabilities of £26,347 and large net current liabilities of £68,839 indicate an inability to cover short-term obligations from available current assets. This negative working capital position raises concerns about liquidity and the company’s capacity to service debt or meet financial commitments without external support. The absence of profit and loss data limits insight into operational performance, but the balance sheet alone suggests financial distress. Given the company’s very recent incorporation (2023) and micro-entity status, it has limited trading history to demonstrate resilience or growth. For credit purposes, this company currently lacks sufficient financial strength to support lending without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet reveals fixed assets of £43,503 but current assets of only £1,551 against current liabilities of £71,644, resulting in a working capital deficit of £68,839. Total net assets are negative at £26,347, reflecting accumulated losses or shareholder funding shortfalls. Shareholders’ funds are also negative, indicating that liabilities exceed the total assets. This weak equity base and poor liquidity position imply limited buffer to absorb financial shocks or downturns. The company’s micro-entity classification and minimal employee count (1) suggest a small operational scale with limited asset backing.

3. Cash Flow Assessment:
   Current assets largely comprise minimal cash or equivalents and receivables, insufficient to cover short-term liabilities. Negative net current assets point to potential cash flow difficulties, with an immediate need for working capital injections or credit lines to sustain operations. The company’s inability to generate positive cash flows internally or maintain adequate liquidity poses a risk for timely repayment of debts or creditor settlements. Without additional information on cash flow statements or profit generation, it is prudent to assume fragile cash flow conditions.

4. Monitoring Points:

• Improvement in working capital and liquidity ratios, particularly current ratio and quick ratio.
• Generation of positive retained earnings and net profit in subsequent accounting periods.
• Reduction in current liabilities or conversion to longer-term obligations to ease short-term pressure.
• Evidence of operational scale expansion or revenue growth to support sustainable cash flow.
• Directors’ ability to inject further capital or secure external financing if needed.
• Timeliness and accuracy of future filing of accounts and confirmation statements for up-to-date financial tracking.