CANIGOU UMS LTD

Executive Summary

CANIGOU UMS LTD demonstrates severe financial distress with negative net assets of over £2 million and zero turnover in the latest year. Liquidity is critically impaired, and the company is loss-making without operational income, raising significant concerns over its ability to service debt. Credit approval is not recommended without substantial turnaround evidence or financial support.

CANIGOU UMS LTD - Analysis Report

Company Number: 12747532

Analysis Date: 2025-07-29 20:24 UTC

1. Credit Opinion: DECLINE
   CANIGOU UMS LTD exhibits significant financial distress and negative net worth. Despite being an active private limited company since 2020, the latest financial year shows a substantial net liability position (£-2.14m) with no turnover and recurring losses (£466k loss in 2024). Current liabilities far exceed current assets, indicating poor liquidity and an inability to meet short-term obligations. The large fixed asset figure (£1.03m) in 2024 is likely non-liquid and insufficient to cover the steep long-term creditor obligations (£2.73m). The company’s worsening financial trajectory and negative shareholders’ funds suggest high credit risk and inadequate capacity to service debt.

2. Financial Strength:
   The balance sheet reveals a troubling financial position. Over four years, net assets deteriorated from positive £336k (2020) to negative £2.14m (2024). Current assets collapsed from £659k (2023) to only £139 (2024), while current liabilities remain high (£2.73m). The significant increase in fixed assets in 2024 does not improve overall solvency due to large creditor balances. Negative working capital of £-441k highlights liquidity stress. The absence of turnover and persistent losses undermine the company’s ability to generate internal funds for debt servicing. Overall, the financial strength is poor and deteriorating.

3. Cash Flow Assessment:
   Liquidity is critically weak. The company’s current ratio (current assets/current liabilities) is approximately 0.05, signaling inability to cover short-term debts. With no reported sales revenue and increasing losses, operating cash flow is likely negative. The absence of employees and operating income suggests limited business activity or potential cessation of trading operations. Reliance on external funding or creditor forbearance appears likely. The net cash position and working capital management are insufficient to support ongoing operations or debt repayments.

4. Monitoring Points:

• Turnover generation: Any new revenue streams to improve cash inflows.
• Reduction in creditor balances and liabilities.
• Improvement in working capital and current asset base.
• Management actions to stem losses and improve profitability.
• Director conduct and any changes in control or restructuring strategy.
• Filing of subsequent accounts to confirm financial trends.