AXEL TECH SERVICES LTD

Executive Summary

AXEL TECH SERVICES LTD is currently inactive with no trading activity and minimal financial resources. Historical financials show insolvency and poor liquidity, making the company unable to support credit facilities. Without operational turnaround or capital injection, credit approval is not advisable at this time.

AXEL TECH SERVICES LTD - Analysis Report

Company Number: 12833911

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

1. Credit Opinion: DECLINE
   AXEL TECH SERVICES LTD shows no trading activity or revenue generation for the latest financial year ending 31 August 2024, with turnover reported as £0. The company’s financial history over recent years highlights significant liquidity and solvency issues, including negative net assets and net current liabilities in prior years (2020-2023). Although the latest accounts show a nominal positive net asset figure of £1, this is not reflective of meaningful financial strength or operational viability. The absence of turnover, no employees, and minimal cash reserves raise serious concerns about the company’s ability to service any credit facilities or meet commercial obligations. Given these factors, approval for new credit facilities is not recommended without significant operational turnaround and financial improvement.

2. Financial Strength:
   The company’s balance sheet is extremely weak. Historical data shows persistent negative net assets: £-1,672 in 2023 and £-904 in 2021, indicating insolvency issues. The current year shows net assets of only £1, with current assets also negligible, primarily cash of £1. No fixed assets are reported in the latest accounts, despite previously holding some. Shareholders’ funds are minimal (£1), reflecting no meaningful equity buffer. Overall, the company lacks tangible assets or capital reserves to absorb financial stress or support borrowing.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash on hand is £1, with no reported operational revenue or turnover during the period. Net current assets are positive but trivial (£1), indicating no working capital to support day-to-day operations or debt servicing. The absence of employees and operational expenses suggests inactivity rather than efficient cash management. There is no evidence of cash inflows or business activity that could underpin sustainable cash flow.

4. Monitoring Points:

• Monitor for any material change in trading activity or revenue generation.
• Watch for improvements in net current assets and positive operating cash flow.
• Track director actions or capital injections that enhance equity or liquidity.
• Review subsequent filings for signs of restructuring or business restart.
• Observe any changes in control or management that could impact credit risk.