Company Number: 15513363

Analysis Date: 2025-07-29 17:28 UTC

1. Credit Opinion: DECLINE
   Exact-O-Bore Plant Limited is a newly incorporated business with the first financial year just ended. The balance sheet shows net current liabilities (£823) and negative shareholders' funds (£823), indicating a weak financial base. The company has no employees and limited cash resources (£15,077) against current liabilities (£41,000). There is no profitability or cash flow history, and the director is the sole owner and controller, which concentrates risk. Given the early stage, negative net assets, and limited liquidity, the company currently lacks the financial strength and proven track record to support additional credit facilities.

2. Financial Strength:
   The company’s total assets (£40,177) are primarily current assets (debtors £25,100, cash £15,077), with no fixed assets reported. Current liabilities (£41,000) exceed current assets, resulting in a small but negative net working capital position (-£823). Shareholders’ funds are negative (-£823), reflecting accumulated losses or initial investment shortfall. This weak balance sheet signals limited financial buffer and potential solvency risks if liabilities increase or cash inflows slow.

3. Cash Flow Assessment:
   Cash on hand (£15,077) is insufficient to cover short-term liabilities (£41,000), suggesting tight liquidity and potential cash flow stress. Debtors (£25,100) may partly mitigate this, but collection timing and reliability are uncertain. Absence of employees and limited operational scale imply constrained cash generation capacity. Without external funding or improved collections, the company could struggle to meet creditor demands promptly.

4. Monitoring Points:

• Liquidity metrics (current ratio, quick ratio) to track improvement or deterioration.
• Timely collection of debtors to sustain cash flow.
• Evolution of net assets and retained earnings in subsequent filings.
• Any new credit facilities or capital injections that strengthen the balance sheet.
• Operational progress including employee hiring and revenue growth for business viability.