FUN XTREAM LTD

Executive Summary

Fun Xtream Ltd is an early-stage micro-entity with a fragile financial position characterized by marginal net current assets and net liabilities. The absence of operational scale and minimal financial history limit confidence in its debt servicing capacity. Credit facilities are not recommended until the company demonstrates improved financial stability and cash flow generation.

FUN XTREAM LTD - Analysis Report

Company Number: 15014236

Analysis Date: 2025-07-29 16:05 UTC

1. Credit Opinion:
   DECLINE. Fun Xtream Ltd is a newly incorporated micro-entity with minimal financial history and very limited net assets (£-65). The company shows marginal net current assets (£35) but overall net liabilities, indicating a weak balance sheet. With no employees and minimal operational scale to date, there is insufficient evidence of operational cash flow generation or financial resilience. The company's ability to service any credit facility is highly uncertain at this stage.

2. Financial Strength:
   The balance sheet reveals very limited resources: current assets stand at £10,035 offset by nearly equivalent current liabilities of £10,000, leaving negligible working capital. The net liabilities position (£-65) and negative shareholders’ funds reflect initial start-up losses or capital investment shortfalls. No fixed assets or long-term investments are reported. This thin capitalization and minimal asset base present a fragile financial foundation.

3. Cash Flow Assessment:
   Cash liquidity appears minimal with current assets largely consumed by current liabilities, suggesting tight working capital management. The absence of any employees or substantive operational scale implies limited cash inflows from business activities so far. Without a track record of positive cash flow or retained earnings, the company’s short-term liquidity to meet debt servicing or operating expenses is questionable.

4. Monitoring Points:

• Development of positive net assets and shareholders’ funds in future filings.
• Improvement in net current assets and liquidity ratios.
• Evidence of sustainable revenue generation and cash flow from operations.
• Any changes in director or ownership structure impacting governance or financial backing.
• Timely filing of future accounts and confirmation statements to maintain regulatory compliance.