Company Number: SC745533

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: DECLINE
   Cal&Dun Property Ltd exhibits a weak financial position with persistent negative net current assets and shareholders' funds, indicating an erosion of capital and inability to cover short-term liabilities from current assets. The company has been operating at a deficit since incorporation, with net current liabilities increasing from £50,410 in 2023 to £31,892 in 2024, albeit showing a slight improvement. The absence of profitability data and reliance on directors’ continued financial support raise concerns over the company’s ability to service debt or meet credit obligations independently. There is no evidence of significant asset backing or positive cash flows to mitigate these risks. Given these factors, credit approval is not recommended without substantial improvement and additional security.

2. Financial Strength:
   The balance sheet reveals total assets less current liabilities of negative £27,918 as of 30 September 2024, improving from a negative £45,735 the previous year but still severely deficient. Fixed assets are minimal (£3,974) and do not provide a strong collateral base. Current liabilities exceed current assets by a significant margin, driven by creditors of £68,438 against current assets of only £36,546, including cash of £2,559. Shareholders' funds are negative (£-27,920), reflecting accumulated losses and insufficient equity. The company remains heavily reliant on external support to remain solvent.

3. Cash Flow Assessment:
   Cash balances are very low (£2,559) relative to current liabilities, indicating liquidity stress. Debtors increased from zero to £33,987, but it is unclear how collectible these amounts are or their aging profile. The persistent negative working capital position implies cash is insufficient to cover short-term obligations without additional funding. The company’s reported going concern assumption hinges on directors’ financial support rather than operational cash generation, signaling weak internal cash flow generation and potential liquidity risk.

4. Monitoring Points:

• Improvement or deterioration in net current assets and shareholders’ funds
• Collection efficiency and aging of debtors to assess cash conversion
• Changes in creditor balances and payment terms indicating cash flow strain
• Directors’ willingness and ability to continue financial support
• Filing of future accounts and any changes in business activity or control that might affect credit risk