Company Number: 14721557

Analysis Date: 2025-07-20 12:16 UTC

1. Credit Opinion: DECLINE
   Azala Property Limited is a newly incorporated micro-entity with net liabilities of £9,033 as at the first year-end (31 March 2024). The company’s current liabilities exceed current assets by £68,817, indicating a significant working capital deficiency. The absence of employees and the negative net asset position suggest the company is not yet generating positive cash flow or profits. Given the early stage of operations, minimal asset base, and weak liquidity, the company currently lacks the financial strength to reliably service any debt or credit facilities. Without evidence of additional funding or a turnaround plan, extending credit would pose a high risk.

2. Financial Strength:
   The balance sheet shows fixed assets of £59,784 but current liabilities of £73,045 exceed current assets of only £4,228, resulting in negative net current assets of £68,817. Net assets and shareholders’ funds stand at negative £9,033, reflecting accumulated losses or shareholder loans that have not been converted to equity. This financial position is typical for a start-up but indicates insolvency risk without capital injection or operational improvements. The company currently operates with no employees and limited financial resources.

3. Cash Flow Assessment:
   Liquidity is constrained given the significant net current liability position. Current liabilities are almost 17 times the current assets, implying that the company may struggle to meet short-term obligations as they fall due. There is no disclosed profit and loss data, but the negative net assets imply losses or cash burn. The lack of employees and small asset base suggest minimal operational activity to generate cash inflows. Reliance on the controlling shareholder’s capital or external funding is likely necessary to sustain operations.

4. Monitoring Points:

• Improvement in net current assets and reduction of current liabilities
• Evidence of positive operating cash flow or profitability in subsequent periods
• Additional capital injections or shareholder loans to strengthen equity
• Timely filing of next accounts and confirmation statements
• Any changes in director or ownership structure that may impact control or financial support