CSK WM LTD

Executive Summary

CSK WM LTD shows improving net asset value backed by significant property assets but currently operates with no turnover and negative working capital due to high short-term liabilities, mainly directors’ loans. Liquidity risk is elevated, and credit approval should be conditional on continued director support and close cash flow monitoring. The company’s financial trajectory indicates asset growth but requires improved operational cash flow or restructuring to ensure debt servicing capacity.

CSK WM LTD - Analysis Report

Company Number: 13476360

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CSK WM LTD is a relatively new private limited company operating in the real estate letting sector with no recorded turnover to date. The company shows a positive net asset position that has improved year-on-year, supported by tangible fixed assets primarily in property. However, the company carries significant current liabilities exceeding current assets, resulting in negative working capital, mainly driven by directors’ current account balances. The ability to service short-term obligations may be constrained, but the presence of fixed assets and positive retained earnings provide some collateral and financial buffer. Given the absence of turnover and reliance on director funding, credit approval is conditional upon monitoring cash flow closely and ensuring director support continues.

2. Financial Strength:

• Fixed assets (property) increased materially from £192k in 2023 to £512k in 2024, indicating investment or acquisition of real estate assets.
• Net assets have grown from £46k in 2023 to £63.9k in 2024, showing gradual equity build-up despite operational losses.
• Current liabilities have increased substantially from £192.7k to £410.9k, mostly represented by directors’ current accounts (£405.7k).
• The company has no turnover and reported operating profit due to other operating income, likely related to rental income or internal accounting.
• Long-term liabilities reduced from £64.4k to £41.9k, showing some debt repayment.

3. Cash Flow Assessment:

• Cash on hand dropped significantly from £110.7k to £4.1k over the year, indicating liquidity tightening.
• Net current assets are negative by £406.7k, meaning current liabilities exceed current assets by a large margin, a liquidity risk.
• The main current liability is directors’ current accounts, suggesting ongoing director funding to cover short-term obligations.
• The company’s lack of turnover means operating cash inflows are limited or absent, increasing reliance on external or director funding for liquidity.
• The company needs to improve cash inflows or restructure current liabilities to avoid liquidity stress.

4. Monitoring Points:

• Track cash balances and working capital monthly to detect any liquidity shortages.
• Monitor directors’ current account balances and any changes in director funding commitment.
• Review any rental income or other operating income to assess sustainability of cash inflows.
• Watch for timely repayment or restructuring of short-term liabilities to avoid insolvency risk.
• Assess any changes in fixed asset valuations or additional acquisitions that may affect asset coverage.
• Confirm filing of annual accounts and confirmation statements remain on time to avoid compliance risks.