Company Number: 12386077

Analysis Date: 2025-07-20 11:43 UTC

1. Credit Opinion: DECLINE
   DATA ENTRY UK 1988 LTD currently displays significant financial distress. The latest accounts for the year ending 31 January 2024 show net current liabilities of £10,134, a reversal from positive net current assets in prior years (£4,748 in 2023). This negative working capital position indicates the company is unable to meet short-term obligations as they fall due, raising serious liquidity concerns. Without fixed assets or tangible collateral, the company lacks financial buffers. The limited share capital (£2) and absence of employees also suggest a very lean operation with minimal operational scale. Given these factors, granting credit facilities or commercial terms would pose high risk without substantial guarantees or improvements.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position. In 2023, net assets were positive at £4,748, but by 2024, net assets have turned negative (£-10,134). Total current liabilities have increased sharply from £3,742 to £18,624, while current assets remain static at £8,490. The absence of fixed assets means the company has no long-term tangible resources to leverage. This negative net asset position signals potential insolvency risk if the trend continues. Shareholder funds have similarly declined from positive to negative, reflecting accumulated losses or unaddressed liabilities.

3. Cash Flow Assessment:
   The company’s liquidity is weak, as shown by negative net current assets (working capital) of £-10,134. This indicates current liabilities exceed current assets by a significant margin, impairing the company’s ability to pay creditors on time. The static current asset figure suggests no growth in cash or receivables, while the sharp increase in payables or short-term debt is a red flag. The absence of employees implies minimal operating expenses but also limited revenue-generating capacity. Overall, cash flow coverage of liabilities is inadequate, which could lead to payment defaults.

4. Monitoring Points:

• Track quarterly updates on current liabilities and current assets to detect any further deterioration or recovery in working capital.
• Monitor any changes in share capital or equity injections that could restore positive net assets.
• Review director statements or strategic plans for turnaround or restructuring efforts.
• Watch for overdue filings or legal actions that may indicate worsening financial distress.
• Assess the company’s ability to generate cash or secure external funding to cover growing liabilities.