CALAMUS UK LTD

Executive Summary

Calamus UK Ltd is experiencing significant financial distress, with persistent negative net assets and a heavily leveraged balance sheet reliant on intra-group funding. The company’s liquidity position is weak, with current liabilities far exceeding current assets and minimal cash reserves. Given these factors, it is not creditworthy under current conditions and would require substantial improvement in financial health before credit facilities could be considered.

CALAMUS UK LTD - Analysis Report

Company Number: 13476410

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: DECLINE
   Calamus UK Ltd demonstrates significant and persistent negative net current assets and shareholders' funds over the last three financial years, indicating severe financial distress and insolvency concerns. The company’s current liabilities substantially exceed current assets, with net current liabilities around £39,793 as of June 2024, worsening slightly from previous years. There is also a notable reliance on amounts owed to group undertakings (£26,777), suggesting dependency on related parties for funding rather than independent cash generation. The lack of employees and absence of an income statement further obscure operational viability. Given these factors, the company currently lacks the financial strength and liquidity to service debt or sustain additional credit risk.

2. Financial Strength:
   The balance sheet shows a highly leveraged position with shareholders’ deficit of approximately £39,794 as of year-end 2024. Current assets (£2,561), mainly cash (£2,150), are insufficient to cover current liabilities (£42,354). The debt structure is heavily skewed toward intra-group liabilities (£26,777), raising concerns about external creditor protection and the resilience of funding sources. Fixed assets are not reported, indicating no tangible assets to support borrowing. The company’s financial trajectory is negative, with no improvement in net liabilities or capital structure over the last three years.

3. Cash Flow Assessment:
   Cash balances remain minimal (£2,150) and have only modestly increased from the previous year, while trade creditors and other creditors remain substantial. The company’s working capital position is deeply negative, indicating ongoing liquidity stress. Debtors have decreased significantly to £411 from £26,571 the previous year, which might suggest collection of outstanding amounts but also reduction in sales or billing activity. The absence of employees suggests minimal operational activity or a potential winding down phase, adversely affecting cash flow generation. Overall, the company’s cash flow situation appears fragile and unlikely to support debt servicing without external support.

4. Monitoring Points:

• Track changes in net current assets and shareholders’ funds for signs of turnaround or further deterioration.
• Monitor related party transactions and balances owed to group undertakings for potential funding risks.
• Watch cash balances and debtor collections closely to assess liquidity trends.
• Review any operational changes such as hiring or revenue recognition to evaluate business viability.
• Confirm the company’s going concern status in future filings and any plans to address negative equity.