ASTRO GLOBAL CARE LTD

Executive Summary

Astro Global Care Ltd is a start-up private company with a modest equity base and significant director loans financing its operations. It currently maintains adequate liquidity to meet short-term obligations, but the financial structure relies heavily on insider funding, posing a risk if trading cash flows do not improve. Credit approval is recommended conditionally with careful ongoing monitoring of cash flow and capital structure development.

ASTRO GLOBAL CARE LTD - Analysis Report

Company Number: 14554701

Analysis Date: 2025-07-19 13:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Astro Global Care Ltd is a recently incorporated private limited company (Dec 2022) operating in social work and temporary employment sectors. The company shows modest net assets (£1,311) and manageable current liabilities (£1,550), but it carries significant long-term liabilities (£25,639), primarily director loans. The business is in early stages with limited financial history; the director’s commitment via loans supports operations but also implies reliance on insider funding. Credit can be extended on condition of monitoring cash flow closely and receiving assurances on improved equity or external funding to reduce director loan dependence.

2. Financial Strength:
   The balance sheet presents total fixed assets of £13,500 (fixtures and computer equipment) and current assets of £15,000 cash, yielding net current assets of £13,450. However, long-term liabilities of £25,639, mainly director loans (£25,000), reduce the net assets to £1,311, indicating very thin equity. The company’s leverage is high relative to equity, reflecting start-up capital structure rather than mature financial strength. The absence of depreciation indicates assets are newly acquired, consistent with recent formation.

3. Cash Flow Assessment:
   Cash at bank is £15,000, which covers current liabilities (£1,550) comfortably, indicating short-term liquidity sufficiency. The positive working capital (£13,450) supports operational liquidity. However, the company’s ability to service the substantial director loan over the long term is uncertain without evidence of profitable operations or forecast cash flow. The average employee count of 5 suggests payroll commitments. Ongoing monitoring of cash inflows and outflows is critical to ensure operational sustainability.

4. Monitoring Points:

• Track growth in retained earnings and net assets to build equity base and reduce reliance on director loans.
• Monitor cash flow statements and liquidity trends in subsequent accounts for signs of operational cash generation.
• Watch for timely repayments or restructuring of director loans to reduce long-term liabilities.
• Review any increases in current liabilities or accruals that may impact short-term liquidity.
• Observe compliance with filing deadlines and any changes in management or control that could affect governance.