AXE CAP LONDON LIMITED

Executive Summary

AXE CAP LONDON LIMITED exhibits a concerning decline in financial health marked by reduced net assets and increased current liabilities, coupled with minimal operational scale. Liquidity is marginal and cash flow appears constrained, undermining its ability to meet short-term obligations. Credit exposure is not recommended without substantial improvement in financial and operational metrics.

AXE CAP LONDON LIMITED - Analysis Report

Company Number: 12799095

Analysis Date: 2025-07-20 12:03 UTC

1. Credit Opinion: DECLINE
   AXE CAP LONDON LIMITED shows a significant decline in net assets and shareholders funds from £15,115 in 2022 to £1,755 in 2023, indicating erosion of financial strength. The company operates at a micro scale with minimal capital (£1 share capital) and zero employees, suggesting limited operational capacity. The presence of current liabilities in 2023 (£30,027) versus none in prior years, combined with minimal net current assets (£3,130), raises concerns about liquidity and the ability to meet short-term obligations. This deteriorating financial position and lack of operational scale suggest a weak capacity to service debt or absorb financial shocks, leading to a decline recommendation for credit facilities.

2. Financial Strength:
   The balance sheet reveals a sharp reduction in net assets from £15,115 (2022) to £1,755 (2023). The increase in current liabilities to £30,027 in 2023, previously nil, indicates new short-term obligations that substantially strain the company’s resources. Total assets less current liabilities dropped similarly, reflecting reduced financial cushion. The company holds minimal fixed assets and no employees, suggesting limited collateral or human capital to support business continuity or growth. Overall, the financial strength is weak, with a fragile equity base and increasing liabilities.

3. Cash Flow Assessment:
   Current assets increased from £15,115 to £33,157 in 2023, but this is offset by current liabilities of £30,027, resulting in a small positive net working capital of £3,130. The narrow liquidity margin raises concerns over the company’s ability to manage cash outflows, particularly with no reported employees or turnover figures for 2023. Absence of turnover data for the latest period implies potential operational inactivity or poor revenue generation, which threatens ongoing cash flow sufficiency.

4. Monitoring Points:

• Monitor net assets and working capital trends for further deterioration.
• Watch for timely payment of current liabilities and any overdue creditor balances.
• Track turnover and profitability updates to assess revenue generation outlook.
• Review director reports or filings for strategic changes or capital injections.
• Observe any changes in operational scale or employee numbers that may impact cash flow.