Company Number: SC680737

Analysis Date: 2025-07-29 20:33 UTC

1. Credit Opinion: DECLINE
   Azeri Ecosse Ltd exhibits a severely weakened financial position with substantial net liabilities (£323,954 negative shareholders' funds as at 30 November 2024) and a large working capital deficit (net current liabilities of £516,989). The company’s current liabilities exceed current assets by a significant margin, raising serious concerns about its ability to meet short-term obligations. Despite being active and filing accounts on time, the negative equity position has worsened over time, indicating ongoing losses and insufficient capital injection. This financial instability suggests a high risk of payment default and poor resilience to economic shocks. Without clear evidence of imminent turnaround or financial support, credit provision is not advisable.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £330,711, but these are outweighed by current liabilities of £544,130 and additional long-term liabilities of £137,676, resulting in net liabilities overall. Share capital is minimal (£2), reflecting very limited equity buffer. The company’s accumulated losses have more than doubled in one year, from approximately £146k in 2023 to £324k in 2024. There is no positive net asset base, indicating a fragile capital structure and poor financial strength.

3. Cash Flow Assessment:
   Cash on hand improved modestly from £8,078 in 2023 to £15,262 in 2024, but remains insufficient relative to current liabilities. Debtors balance increased slightly but remains low (£6,879). The large negative working capital position points to liquidity stress and potential reliance on creditor financing or external funding to sustain operations. The company’s ability to generate positive operational cash flow is not evident from the data, and cash reserves are inadequate to cover short-term debts.

4. Monitoring Points:

• Track improvements or deterioration in net current assets and net liabilities in subsequent accounts.
• Monitor cash flow statements (if available) for operational cash generation trends.
• Watch for any capital injections or restructuring efforts to improve equity and liquidity.
• Observe changes in creditor terms and potential overdue payments or defaults.
• Review management actions to reduce losses and improve profitability.