ELMS RANGE LIMITED

Executive Summary

Elms Range Limited is a micro-entity with an extremely weak financial profile, characterized by negligible equity and liquidity and a balance sheet fully leveraged by long-term creditors. The company shows no operational activity or capacity to generate cash flow, making it unable to service debt or sustain business operations. Credit approval is not recommended without significant financial restructuring or guarantees.

ELMS RANGE LIMITED - Analysis Report

Company Number: 13787100

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: DECLINE
   Elms Range Limited demonstrates an extremely weak financial profile. With net assets and shareholders’ funds at just £1 and current assets of only £1, the company lacks meaningful capital or liquidity to meet short-term obligations. Its balance sheet shows a long-term creditor liability of £107,224 offsetting fixed assets of the same amount, indicating the company is heavily leveraged or funded by debt that is not reflected in current liabilities. Absence of employees and minimal operational activity raises concerns about ongoing revenue generation and cash flow sufficiency to service debt or finance operations. Given this micro-entity scale with no visible revenue or working capital, credit extension would be imprudent without substantial additional financial support or guarantees.

2. Financial Strength:
   The company’s balance sheet is fragile and highly leveraged. Fixed assets of £107,224 are entirely offset by non-current creditors of the same amount, leaving net assets at a nominal £1. Current assets and liabilities are negligible, providing no buffer for operational needs. This structure indicates no retained earnings or equity cushion to absorb losses or support growth. The static financial position over three years suggests no improvement or capital injection. The absence of employees further implies minimal business activity or revenue generation capability.

3. Cash Flow Assessment:
   With current assets of only £1 and current liabilities also minimal, working capital is effectively zero, signaling a critical liquidity issue. The company generates no evident cash inflows, as reflected by zero employees and no reported turnover. This lack of operational cash flow severely limits the company’s ability to meet any short-term financial commitments or unexpected expenses. The reliance on long-term creditors without clear repayment terms or income streams is a significant risk to creditor security.

4. Monitoring Points:

• Watch for any changes in asset base or injection of equity capital to improve net asset position.
• Monitor cash flow statements and turnover data when available to assess operational viability.
• Observe any changes in director appointments or control that may signal restructuring.
• Review future filings for signs of increased liabilities or overdue accounts that may indicate financial distress.
• Track market conditions in the real estate sector (SIC 68100) for external impact on business prospects.