ASSET BASE LTD

Executive Summary

Asset Base Ltd is a newly incorporated micro company with minimal but stable net assets and no borrowings. While its financial scale and cash flow visibility are limited, the company demonstrates steady capital support and no current liabilities. A small credit facility may be considered with strict conditions and ongoing monitoring due to the modest financial base and short trading history.

ASSET BASE LTD - Analysis Report

Company Number: 13991232

Analysis Date: 2025-07-29 17:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Asset Base Ltd is a micro private limited company with modest financials but shows stable net assets and working capital over the last two years. However, the company’s balance sheet is limited (net assets of £12,000, no fixed assets, no current liabilities) and there is no evidence of revenue or cash inflows disclosed in the accounts. The minimal scale and short trading history since incorporation in 2022 means credit exposure should be limited and monitored closely. Approval could be given for a small credit facility with conditions such as regular financial updates and limits commensurate with its financial profile.

2. Financial Strength:
   The company’s financial position is very modest but stable. Net assets increased slightly from £10,000 to £12,000 from 2023 to 2024, driven by an increase in prepayments and accrued income (current assets) and no current liabilities. No fixed assets are held, so tangible asset coverage is absent. Shareholders funds consist entirely of capital injection or retained earnings with no borrowings. The balance sheet indicates a low-risk profile in terms of leverage but also very limited business scale or asset base.

3. Cash Flow Assessment:
   The accounts show zero current liabilities and current assets represented solely by prepayments and accrued income, which are non-cash assets. No cash or cash equivalents are reported and no trading profit or loss figures are available. This suggests limited operating cash flow generation or possibly no trading activity during the period. The company employs 2 staff but cash flow to support payroll and operations is unclear. Liquidity risk is present given the lack of cash or liquid assets, so any credit facility should consider working capital support requirements.

4. Monitoring Points:

• Quarterly or semi-annual financial statements to track revenue generation, cash balances, and working capital changes.
• Confirmation of trading activity and cash inflows supporting operational costs.
• Any changes in director or shareholder structure that may impact governance or credit risk.
• Watch for increases in liabilities or borrowings that could strain the company’s limited asset base.
• Monitor compliance with filing deadlines and any material changes in business activities or sector risks (residents property management, management consultancy).