Company Number: 14737828

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: DECLINE
   ASK RM LTD exhibits significant financial weaknesses for credit approval at this stage. The company shows persistent net liabilities and negative shareholders' funds, indicating an insolvency position on a balance sheet basis. Its current liabilities consistently exceed current assets, resulting in negative working capital. Given the lack of operating employees and minimal current assets, the company’s ability to meet short-term obligations and service any new debt is highly questionable. Without clear evidence of profitability or cash inflows, extending credit would be high risk.

2. Financial Strength:
   The balance sheet shows fixed assets of £287,420, which appear fully funded by long-term creditors (amounts due after more than one year equal to the same £287,420). Current assets are minimal (£208 at the latest year-end) and current liabilities stand at approximately £6,230, producing a net current liability position. Net liabilities worsened from -£838 in 2024 to -£6,742 in 2025, reflecting an erosion of equity. This indicates the company is highly leveraged with no retained earnings or shareholders’ funds to absorb losses or financial shocks.

3. Cash Flow Assessment:
   The company's liquidity position is poor. Current assets, mainly cash and receivables, are insufficient to cover current liabilities, resulting in a working capital deficit. The absence of employees and minimal current assets suggest limited operational cash generation. No cash flow statements were provided, but the negative working capital and net liability position imply weak or negative operating cash flows. This raises serious concerns about the company’s capacity to meet short-term liabilities or service debt without additional capital injections.

4. Monitoring Points:

• Track changes in net assets and shareholders’ funds to detect any improvement or further deterioration in equity.
• Monitor working capital trends, especially current assets vs. current liabilities, to assess liquidity risk.
• Review any new filings for signs of increased operational activity or profitability.
• Watch for director or shareholder capital contributions or restructuring plans that might improve financial stability.
• Keep an eye on timely filing of accounts and confirmation statements as indicators of management diligence.