EXALTED CONCEPTS LIMITED

Executive Summary

Exalted Concepts Limited demonstrates ongoing financial distress with negative net assets and significant working capital deficits primarily funded by director loans. The company’s limited liquidity, absence of employees, and reliance on insider financing indicate low creditworthiness in its current state. Without significant financial restructuring or capital support, extending credit is not advised.

EXALTED CONCEPTS LIMITED - Analysis Report

Company Number: 13125513

Analysis Date: 2025-07-20 11:32 UTC

1. Credit Opinion: DECLINE
   Exalted Concepts Limited’s financial performance indicates significant distress and an inability to meet short-term obligations. The company exhibits persistent net current liabilities and negative shareholders’ funds, signaling erosion of capital and weak liquidity. The trajectory over the last three years shows fluctuating but generally declining net assets, with a negative net asset position of £304 at the latest year-end. The absence of employees and reliance on director loans to finance operations further suggest operational fragility and limited capacity to generate internal cash flows. Consequently, the company is not currently creditworthy for additional borrowing without substantial restructuring or capital injection.

2. Financial Strength:
   The company’s balance sheet reveals fixed tangible assets of £3,627 at 31 January 2024, down from £4,286 the prior year, indicating some asset depreciation or disposals. Current assets are minimal (£1,006), almost entirely cash (£1,005), while current liabilities remain substantial at £4,937, primarily loans from directors (£3,391) and other creditors. Net current liabilities stand at £3,931, showing a significant working capital deficit. Shareholders’ funds are negative (£-304), reflecting accumulated losses and an erosion of equity base. This weak capital structure undermines financial resilience and reduces borrowing capacity.

3. Cash Flow Assessment:
   Cash at bank increased modestly from £744 to £1,005 year-on-year, but this small cash balance is insufficient to cover short-term liabilities. The company relies heavily on director loans (£3,391), indicating external financing from insiders rather than operational cash generation. Debtors are negligible (£1), and there are no employees, implying limited business activity and cash inflows. The negative net current assets position suggests ongoing liquidity stress and potential difficulties in meeting creditor demands without additional injections of capital or debt restructuring.

4. Monitoring Points:

• Monitor liquidity ratios, particularly current ratio and quick ratio, for improvement or further deterioration.
• Track director loan balances and creditor payment terms to assess ongoing funding support and creditor confidence.
• Observe any changes in fixed asset valuations or disposals that might affect collateral availability.
• Review operational activity and cash flow generation, including revenue streams and cost controls, if available, to evaluate business viability.
• Watch for any changes in company structure, capital injections, or management actions aimed at stabilizing finances.