ANE HOMES LTD

Executive Summary

ANE HOMES LTD is currently in a weak financial position with negative net assets and working capital deficit, raising significant concerns about its ability to service debt or meet obligations. The company’s financial trajectory shows deterioration with no evidence of operational scale or cash flow generation. Credit approval is not recommended without substantial financial improvement or external support.

ANE HOMES LTD - Analysis Report

Company Number: SC735583

Analysis Date: 2025-07-29 17:28 UTC

1. Credit Opinion: DECLINE

ANE HOMES LTD shows a deteriorating financial position with negative net assets and shareholders’ funds as of the latest accounts (June 2024). The company is a micro-entity in the real estate buying and selling sector but has no employees and minimal current assets (£0), and current liabilities (£743) exceed current assets, resulting in negative working capital. The company’s net liabilities of £1,703 indicate that it is technically insolvent on a balance sheet basis. Given the absence of cash or other liquid assets and the lack of operating scale or profitability data, the ability to service debt or meet financial obligations is highly questionable. The company’s financial trajectory is negative, moving from modest positive net assets in 2022 and 2023 to negative by 2024, suggesting potential financial distress or inability to generate sufficient revenue. No audit or profit and loss information is provided, limiting insight on operational performance. Management quality cannot be confidently assessed beyond the director’s acknowledgment of statutory compliance. Overall, the company’s financial weakness and lack of liquidity present a high credit risk.

2. Financial Strength:

The balance sheet indicates a micro-entity with net current liabilities of £743 and net assets of negative £1,703 as of June 2024. This negative equity position reflects accumulated losses or liabilities exceeding assets. The company holds no fixed assets and only nominal current assets which dropped from £100 in prior years to zero. Shareholders’ funds have declined sharply from £100 in 2023 to negative £1,703 in 2024. The lack of working capital and negative net assets indicate poor financial resilience and inability to absorb shocks or invest for growth.

3. Cash Flow Assessment:

Cash on hand is negligible or zero, and there is no indication of cash inflows or operating cash generation. Current liabilities exceed current assets, resulting in negative net current assets, which signals liquidity stress. The company’s overdraft or creditor balances, while small in absolute terms (£743), still outweigh available assets. Given the absence of employees and operational scale, limited cash flow is expected and working capital constraints are evident. This weak liquidity position undermines confidence in meeting short-term obligations.

4. Monitoring Points:

• Monitor next accounts filing for any improvement in net asset position or cash balances.
• Watch for evidence of operational revenue, profitability, or capital injection.
• Track any changes in current liabilities or creditor terms that may affect liquidity.
• Review director or shareholder actions indicating restructuring, refinancing or cessation plans.
• Observe any changes in company status or regulator filings that indicate worsening financial health.