ATK DEVELOPMENTS LIMITED

Executive Summary

ATK Developments Limited is currently in a weak financial position characterized by negative net current assets and shareholders’ funds, raising serious doubts about its ability to meet short-term liabilities. The lack of liquidity and absence of profitability signal high credit risk, leading to a recommendation to decline additional credit facilities at this stage. Continuous monitoring of financial improvements and liquidity injections would be necessary before reconsidering credit terms.

ATK DEVELOPMENTS LIMITED - Analysis Report

Company Number: SC711114

Analysis Date: 2025-07-20 19:14 UTC

1. Credit Opinion: DECLINE
   ATK Developments Limited demonstrates significant financial distress with persistent negative net current assets and shareholders’ funds, indicating insolvency on a balance sheet basis. The company’s liabilities substantially exceed its current assets, suggesting an inability to meet short-term obligations without additional funding. Given no positive trend in liquidity or equity and no tangible evidence of profitability or cash generation, extending credit would carry high risk.

2. Financial Strength:
   The company’s balance sheet as of 28 February 2024 shows current assets of £52,987 against current liabilities of £92,019, resulting in net current liabilities of £39,032. Shareholders’ funds are negative at £39,033, reflecting accumulated losses and erosion of equity. The main asset is stock (£43,678), but there is no indication of its liquidity or realization value. The absence of fixed assets and minimal share capital (£1) further weaken financial robustness.

3. Cash Flow Assessment:
   Debtors are low (£9,309), and there is no indication of cash or cash equivalents disclosed, implying limited liquidity. The negative working capital position suggests cash flow constraints that may impair the company’s ability to service debts or operational expenses. The absence of employees and no audit or profit and loss account disclosure further cloud cash flow visibility. Overall, there is a high likelihood of cash flow difficulties.

4. Monitoring Points:

• Improvement or deterioration in net current assets and shareholders’ funds.
• Changes in stock valuation and realization capability.
• Timely payment of trade and other creditors.
• Any capital injections or shareholder loans to support liquidity.
• Filing of subsequent financial statements for evidence of operational progress or worsening.
• Director’s conduct and any potential related party transactions given sole ownership.