FINLO DEVELOPMENTS LTD

Executive Summary

FINLO DEVELOPMENTS LTD is a micro-entity operating in real estate and domestic construction with severely negative net assets and a large working capital deficit. The company’s financial health has significantly deteriorated over the last year, raising concerns about its ability to meet short-term liabilities and service debt. Given the weak liquidity and negative equity, credit facilities are not recommended without substantial improvement in financial metrics or additional security.

FINLO DEVELOPMENTS LTD - Analysis Report

Company Number: 13799692

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: DECLINE
   FINLO DEVELOPMENTS LTD exhibits significant financial distress as evidenced by large negative net assets (£-181,977 as of 31 Dec 2023) and a deteriorating liquidity position. The company’s current liabilities far exceed its current assets, resulting in a substantial working capital deficit of £155,977. The absence of employees and reliance on related party funding or loans is also a concern. These factors indicate a weak capacity to service new or existing debt, making credit extension imprudent at this stage.

2. Financial Strength:
   The balance sheet shows a worsening position over two years, with net liabilities growing from £13,720 in 2022 to £181,977 in 2023. Fixed assets are not reported, and total assets comprise only current assets (cash or equivalents) of £23,610. The company carries significant short-term creditors (£179,587) and some longer-term liabilities (£26,000). Shareholders’ funds are negative, indicating accumulated losses and erosion of equity capital. The micro entity status limits financial disclosure detail, but the available data signals a weak financial foundation.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a wide margin, reflecting poor liquidity and potential cash flow constraints. The company’s working capital is negative, which suggests difficulty in meeting short-term obligations without additional financing. No indication of operational income or cash inflows from trading exists, and the average employee count is zero, implying limited trading activity or that the company is not generating operating cash flows. Reliance on director loans or external funding is likely, increasing risk of default.

4. Monitoring Points:

• Timely filing of accounts and confirmation statements to monitor any further deterioration or improvement.
• Changes in net current assets and net liabilities to assess if liquidity improves.
• Evidence of operational income or positive cash flow generation in future filings.
• Any director or related party loan movements or capital injections.
• Market conditions in the real estate and construction sectors affecting the company’s business model.
• Company’s ability to restructure debt or negotiate creditor terms.