ANCIENT OTHERS INTERACTIVE LIMITED

Executive Summary

Ancient Others Interactive Limited exhibits severe financial distress with persistent negative net assets and a significant working capital deficit, indicating inability to meet debts as they fall due. The absence of operational cash flow and reliance on substantial loans without repayment prospects presents a high credit risk. Credit facilities are not recommended unless substantial restructuring and capital support are confirmed.

ANCIENT OTHERS INTERACTIVE LIMITED - Analysis Report

Company Number: 12835916

Analysis Date: 2025-07-19 12:06 UTC

1. Credit Opinion: DECLINE
   Ancient Others Interactive Limited shows a persistently negative net asset position (-£214k in 2023), indicating insolvency under accounting standards. The company’s current liabilities (£183,833) far exceed its current assets (£99), resulting in a severely negative working capital position (-£30,375). This suggests the company lacks the financial strength and liquidity to meet short-term obligations or service debt. No employees and minimal tangible assets further weaken its operational capacity. The large outstanding loans (£183,833) with no evidence of repayment or profit generation raise significant credit risk. Management appears unable to reverse losses or improve cash flows, and there is no indication of external funding or restructuring.

2. Financial Strength:
   The balance sheet is highly leveraged, with net liabilities worsening from -£205k in 2022 to -£214k in 2023. Shareholders’ funds are deeply negative, reflecting accumulated losses in the profit and loss reserve. Current liabilities exceed current assets by a significant margin, creating a liquidity gap. There are no fixed assets reported, and the company’s only current assets are minimal debtors (£99). Long-term creditor loans remain unchanged and are substantial relative to the size and financial position of the company. Overall, the capital structure is weak and balance sheet solvency is poor.

3. Cash Flow Assessment:
   The company’s working capital deficit indicates ongoing cash flow stress. Debtor balances have drastically declined from £13,291 in 2022 to £99 in 2023, suggesting a reduction in receivables or possibly a contraction of business activity. Without cash reserves or other liquid assets, the company is unlikely to cover operational costs or debt service from internal sources. No employees and no reported revenue undermine cash generation potential. The company relies heavily on external loans, but no repayment capacity or refinancing plan is evident.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities in future filings to detect any improvement or further deterioration.
• Watch for any capital injections or restructuring plans to address the negative equity and liquidity constraints.
• Review trading performance and cash flow statements when available to assess operational viability.
• Track director actions or notifications regarding insolvency proceedings or formal restructuring.
• Check for updated filings on creditor arrangements or new financing that might mitigate current risks.