ATIGA LTD

Executive Summary

Atiga Ltd demonstrates a growing asset base and improving equity but suffers from persistent working capital deficits and significant long-term liabilities. While the company appears operationally lean and financially stable in the medium term, short-term liquidity constraints warrant conditional credit approval subject to ongoing monitoring. Careful oversight of cash flows and debt servicing will be critical to mitigate credit risk.

ATIGA LTD - Analysis Report

Company Number: 13439249

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Atiga Ltd is active and operating in the real estate letting sector with a micro-sized account classification. The company shows a positive trend in net assets over the last three years, indicating improving financial strength. However, the company’s liquidity position is weak, with persistent net current liabilities and a working capital deficit, which could pressure short-term obligations. The large long-term creditor balance (£1,039,000) suggests significant debt or financing commitments that must be serviced. The absence of employees implies a lean operational model, reducing fixed costs but also reliant on external management. Approval is recommended with conditions: close monitoring of liquidity and covenant compliance, and requiring updated management accounts and cash flow forecasts before facility drawdowns.

2. Financial Strength
   The balance sheet shows a steady increase in fixed assets, growing from £1.15m in 2021 to £1.25m in 2024, reflecting investment or acquisition of real estate assets. Shareholders’ funds have increased from £28.6k to £131.5k over the same period, signaling retained earnings or capital injections improving equity. However, current liabilities consistently exceed current assets, resulting in negative net current assets (working capital deficits of approximately £65k to £83k). The company’s total liabilities include a large creditor amount due after one year (£1.03m to £1.04m), likely long-term debt secured against fixed assets. The financial position suggests moderate leverage but limited short-term flexibility.

3. Cash Flow Assessment
   Current assets of £46k chiefly comprise receivables and cash, but these are insufficient to cover short-term liabilities of £129k, indicating potential liquidity stress. The company’s cash conversion cycle and ability to generate operating cash flow are unclear from the data, but the negative working capital highlights reliance on long-term financing or capital injections to meet immediate obligations. The lack of employees suggests minimal payroll burden, which may help conserve cash. Close scrutiny of cash flow forecasts and debt servicing capacity is necessary to ensure ongoing liquidity.

4. Monitoring Points

• Working capital trends and improvements in current asset balances relative to current liabilities
• Debt service coverage ratios and compliance with long-term creditor covenants
• Cash flow generation from operations and timing of rental income or other revenue streams
• Any changes in asset valuations or impairments on property holdings
• Director conduct and governance, noting no adverse disclosures to date
• Timely filing of accounts and return of confirmations to avoid compliance risk