Company Number: SC739158

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: DECLINE
   Kadeallie Limited shows persistent negative net assets and working capital deficits over the last two years, indicating a weak financial position and insufficient buffer to cover short-term liabilities. Cash reserves have drastically reduced from £6,952 to £939, suggesting liquidity strain. The company is loss-making, with accumulated losses reflected in shareholders' funds of -£231k. Given these indicators, the company currently lacks the financial strength and cash flow stability to reliably service additional debt or credit facilities.

2. Financial Strength:
   The company’s balance sheet reveals net liabilities of £231k and negative net current assets of £231k as of July 2024, a slight improvement compared to the previous year but still signaling insolvency on a balance sheet basis. There are no fixed assets listed, implying limited collateral for secured lending. Shareholder funds remain negative, which undermines equity cushion. The decrease in current liabilities from £7,316k to £1,170k is positive but possibly reflects creditor renegotiations or reduced activity rather than improved profitability.

3. Cash Flow Assessment:
   Cash on hand is minimal at £939, inadequate to cover current liabilities of £1,170. The company has a negative working capital position, constraining operational liquidity and limiting ability to absorb unexpected expenses or downturns. The reduction in cash from the prior year indicates cash burn, and the small size of cash relative to liabilities raises concerns about ongoing solvency without fresh capital injection or improved earnings.

4. Monitoring Points:

• Turnover and profitability trends in subsequent periods to assess if losses are being reversed
• Cash flow management and working capital improvements
• Changes in creditors and payment terms to evaluate liquidity pressures
• Any capital injections or restructuring efforts to restore equity
• Director conduct or control changes that could impact governance and financial stewardship