CARAWAYS PROPERTY LTD

Executive Summary

Caraways Property Ltd is a micro-entity in its infancy with no income and a weak financial position marked by losses and negative net assets. Its current lack of liquidity and operational cash flow makes it unable to service credit obligations. Credit facilities are not recommended until the company demonstrates revenue generation and improved financial health.

CARAWAYS PROPERTY LTD - Analysis Report

Company Number: 14866365

Analysis Date: 2025-07-29 15:42 UTC

1. Credit Opinion: DECLINE
   Caraways Property Ltd is a newly incorporated micro-entity with no turnover during its first 13-month accounting period. The company shows a net loss of £7,808 and negative net assets of £4,000, indicating that liabilities exceed assets. With zero current assets and a working capital deficit of £4,000, the company currently lacks the financial capacity to service any debt or credit facilities. The absence of revenue and operational cash inflows raises significant concerns about its ability to repay loans or meet commercial obligations. Given the early stage of operations and weak financial position, extending credit at this time is not advisable.

2. Financial Strength:
   The balance sheet reveals no fixed or current assets and current liabilities of £4,000 resulting in negative net assets and shareholders’ funds of -£4,000. The company’s capital structure is weak, reflecting initial losses and no retained earnings. The lack of tangible or liquid assets to secure credit facilities means the company is not financially robust. As a micro-entity with minimal operational history, there is no evidence of financial resilience or growth trajectory.

3. Cash Flow Assessment:
   The company shows no turnover and no cash or equivalents reported as current assets, suggesting negligible liquidity. Negative net current assets confirm a working capital deficit, implying insufficient short-term funds to cover liabilities. The loss position further suggests that operational cash flow is negative or non-existent. The absence of employees and minimal activity likely means the company is still in startup or preparatory phases, limiting its ability to generate positive cash flow in the short term.

4. Monitoring Points:

• Revenue generation: Monitor for first signs of turnover and sustainable income streams.
• Working capital improvements: Watch for positive net current assets indicating improved liquidity.
• Profitability trends: Track progress toward breaking even and generating profits.
• Director’s financial support or capital injections: Any equity contribution could strengthen the balance sheet.
• Timely filing of future accounts and confirmation statements to assess ongoing compliance and business activity.