SNATIF LTD

Executive Summary

Snatif Ltd operates as a micro-entity in packaging activities with minimal financial resources and a significant decline in net assets over recent years. While compliance with filing requirements is maintained, the extremely limited asset base and single controlling shareholder present material risks to solvency and operational stability. Further investigation into the company’s cash flow generation and business model is essential before considering investment exposure.

SNATIF LTD - Analysis Report

Company Number: 12678469

Analysis Date: 2025-07-20 11:36 UTC

1. Risk Rating: HIGH
   Justification: The company shows extremely limited financial resources with net assets of only £62 as of the latest accounts, a sharp decline from £539 in prior years. Current assets are almost negligible and there are no reported liabilities, but the minimal asset base raises significant concerns about the company’s ability to meet obligations or sustain operations.

2. Key Concerns:

• Severe decline in net assets and current assets over the past 3 years, indicating potential operational difficulties or asset depletion.
• Absence of detailed financials beyond balance sheet totals restricts visibility on revenues, profitability, or cash flows, limiting confidence in operational sustainability.
• Single director and sole shareholder with 75-100% control potentially increases governance and continuity risks, especially in a micro-entity with minimal staffing (average 1 employee).

3. Positive Indicators:

• The company is fully compliant with filings and accounts, with no overdue returns or accounts.
• No current liabilities reported, indicating no immediate repayment pressure.
• The micro-entity exemption and small scale might reflect a low operating cost model.

4. Due Diligence Notes:

• Investigate the nature and source of the company’s revenue and cash flow generation given the minimal current assets.
• Clarify the reason for the rapid decrease in net assets and current assets from £4,013 and £539 respectively in 2021 to £62 in 2024.
• Review business plans or contracts to assess the sustainability of packaging activities (SIC 82920).
• Confirm the operational role and involvement of the directors, given the small scale and sole ownership structure.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the micro-entity accounts.