Company Number: 13196836

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: DECLINE Crypto Accountant Limited exhibits persistent net liabilities and negative shareholders' funds over the last three reported years, indicating an ongoing capital deficiency. The company’s net current liabilities have increased from £2,738 in 2023 to £4,096 in 2024, reflecting worsening liquidity. The company operates with minimal equity (£1 share capital) and relies on short-term borrowings (bank loans and overdrafts) to finance operations. Given the absence of fixed assets or positive net assets, and negative working capital, the company is not currently positioned to meet debt obligations reliably without external support or capital infusion. The lack of turnover and profitability information further limits confidence in repayment capacity. Therefore, from a credit risk perspective, extending credit or lending facilities is not recommended at this stage.

2. Financial Strength: The balance sheet reveals a weak financial position with net liabilities of £4,096 as of February 2024. Shareholders’ funds are negative and deteriorating year-on-year, indicating accumulated losses that exceed the nominal share capital. Current liabilities (overdrafts and short-term loans) have increased, while no fixed assets or tangible capital investments are reported. This suggests the business is primarily financed through short-term debt and is undercapitalised. The absence of tangible fixed assets or equity cushions reduces the company’s financial resilience and recovery options in the event of economic stress.

3. Cash Flow Assessment: The company shows negative net current assets, implying a working capital deficit. The entire current liabilities of £4,096 are likely short-term bank overdrafts, which increases liquidity risk. The company’s cash position is not explicitly stated but previous year data showed negative cash of £1,118, indicating cash flow challenges. The reliance on overdraft facilities without evidence of operational cash inflows raises concerns about the company’s ability to generate sufficient cash to meet short-term obligations. The working capital deficit and lack of accumulated profits further highlight liquidity constraints.

4. Monitoring Points:

• Monitor changes in net current assets and current liabilities closely for improvements or further deterioration.
• Track any capital injections or equity restructuring that could improve shareholders’ funds.
• Review turnover and profitability trends when available to assess operational performance.
• Watch developments related to bank overdraft facilities or any new borrowing arrangements.
• Observe director conduct and compliance with filing deadlines to assess governance quality.