Company Number: 13937181

Analysis Date: 2025-07-29 17:27 UTC

1. Credit Opinion: DECLINE
   Colombo Spot Limited shows significant financial distress with net liabilities of £4,092 at the latest year-end and no evidence of operational revenue or employees. The company has a negative working capital position (£-4,092), indicating an inability to meet short-term obligations from current assets. Additionally, the company is overdue in filing its confirmation statement, which raises concerns about management oversight and compliance. The presence of bank loans and other creditors totaling £4,093 with only £1 in cash severely limits debt servicing capacity.

2. Financial Strength:
   The balance sheet is weak and deteriorated over the last year. From a modest positive net asset position (£1) in 2023, the company swung to net liabilities of £4,092 in 2024. There are no fixed or other assets reported, and shareholders' funds are negative. The company has only £1 in cash and current assets but owes £4,093 in creditors, including £350 in bank loans. The absence of tangible assets and negative equity reflects poor financial health and insufficient capital buffer.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Current assets consist solely of £1 cash, while current liabilities are over £4,000, leading to a large working capital deficit. No cash flow from operations or other sources is evident. This situation implies the company lacks the necessary cash flow to meet immediate obligations or service debts, increasing default risk.

4. Monitoring Points:

• Timely filing of overdue confirmation statements to ensure regulatory compliance.
• Changes in working capital and net asset position in subsequent filings.
• Any operational revenue generation or capital injections that improve liquidity.
• Management actions to address creditor obligations and improve cash flow.
• Director conduct and potential changes in ownership or control.