AXIOS MINING LIMITED

Executive Summary

Axios Mining Limited is financially distressed with significant net liabilities and high long-term debt, indicating weak solvency and limited ability to meet debt obligations. The company’s financial structure is fragile, with no turnover or employees reported, which raises liquidity concerns despite positive net current assets. Credit facilities are not recommended until financial health improves and operational viability is demonstrated.

AXIOS MINING LIMITED - Analysis Report

Company Number: SC712097

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

1. Credit Opinion: DECLINE
   Axios Mining Limited exhibits significant financial distress characterized by persistent net liabilities and negative shareholders’ funds worsening from -£7,687 in 2022 to -£20,484 in 2023. The company’s long-term creditors exceed its total assets by a wide margin, signaling poor solvency and an inability to cover debt obligations from existing asset bases. Given these red flags and no reported turnover or employee activity, the current financial trajectory suggests limited capacity to service debt or meet commercial commitments without substantial capital injection or operational turnaround.

2. Financial Strength:
   The balance sheet shows very weak financial health. Fixed assets have declined sharply from £20,390 to £7,439, possibly indicating asset disposals or write-downs. Although current assets increased modestly (£7,772 to £12,087), current liabilities remain low, resulting in positive net current assets (£12,086). However, this is overshadowed by significant long-term liabilities of £40,009, which greatly exceed total assets, resulting in net liabilities. This imbalance suggests the company is highly leveraged and financially unstable.

3. Cash Flow Assessment:
   There is no explicit cash flow data, but the large negative net assets and significant long-term liabilities imply constrained liquidity and weak working capital support. The absence of employees and no reported turnover likely limits operational cash inflows. The positive net current assets suggest short-term obligations are met, but the overall negative equity and sizeable long-term creditor claims raise concerns about sustainable liquidity over the medium to long term.

4. Monitoring Points:

• Improvement in net asset position and reduction of long-term liabilities
• Evidence of positive operating cash flow or capital injections
• Filing of audited or more detailed accounts for transparency
• Any changes in management or strategy that address financial restructuring
• Trading performance and turnover development to support debt servicing