AXLE AND SPINDLE LIMITED

Executive Summary

Axle And Spindle Limited exhibits a weak financial position with negative net assets and inadequate liquidity to meet short-term liabilities. The company’s limited operational history and current negative working capital warrant a decline for credit facilities at this stage. Close monitoring of future financial improvements and cash flow developments is essential before reconsideration.

AXLE AND SPINDLE LIMITED - Analysis Report

Company Number: 14672749

Analysis Date: 2025-07-20 18:54 UTC

1. Credit Opinion: DECLINE
   Axle And Spindle Limited is a newly incorporated micro-entity with only one financial year filed. The company is showing significant net liabilities of £4,412 and negative net current assets of £4,113, indicating poor immediate liquidity and an inability to cover short-term obligations. The absence of audit and limited financial history restricts visibility on performance trends or management quality. Given the negative net asset position and insufficient working capital, the company currently lacks the financial strength to service debt or credit facilities without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reveals a precarious financial position with total current liabilities £4,134 far exceeding current assets of £21, resulting in a net current liability position. Net liabilities stand at £4,412 after factoring in accruals. Shareholders’ funds are negative, reflecting accumulated losses or initial capital deficit. There are no fixed assets or tangible net worth disclosed, limiting collateral value. The single director and sole shareholder (Mr. Lewis Duett) controls the company, but the financial base is weak.

3. Cash Flow Assessment:
   Current assets largely consist of minimal cash or equivalents (£21), insufficient to meet immediate liabilities of £4,134. The negative working capital suggests ongoing cash flow difficulties, with potential challenges in meeting operational expenses or creditor demands without additional funding. No evidence of positive cash flow generation or reserves is apparent. The company’s micro-entity status and recent incorporation imply limited operational history and uncertain revenue streams.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity in the next reporting period.
• Evidence of positive cash inflows from operations to reduce current liabilities.
• Timely filing of next accounts and confirmation statements to ensure regulatory compliance.
• Any capital injections or external financing that may strengthen the balance sheet.
• Business development progress in core activities (employment agency and health-related services) to assess sustainability.