LEEKTECH LIMITED

Executive Summary

Leektech Limited is currently in a fragile financial state with negative net assets and significant liquidity shortfalls. The company lacks operational scale and cash resources to meet liabilities, posing substantial credit risk. Credit facilities should be declined unless there is clear evidence of financial support or turnaround plans.

LEEKTECH LIMITED - Analysis Report

Company Number: 13733748

Analysis Date: 2025-07-29 14:34 UTC

1. Credit Opinion: DECLINE
   Leektech Limited exhibits a weak financial position characterized by persistent negative net assets (£-1,613 in 2024) and ongoing net current liabilities. The absence of current assets to cover short-term obligations (current assets £0.10 vs current liabilities £1,776) raises significant liquidity concerns, indicating inability to service debt or meet operational expenses without external support. The company has no employees and minimal fixed assets, suggesting limited operational scale and revenue generating capacity. Without evidence of improved cash flows or capital injection, extending credit is high risk.

2. Financial Strength:
   The balance sheet shows a deteriorating financial trajectory with net assets declining from £-903 in 2021 to £-1,613 in 2024. The company’s liabilities exceed assets by a substantial margin, reflecting accumulated losses or undercapitalization. Fixed assets are negligible and declining, while net current liabilities have increased, signaling worsening working capital positions. This weak equity base undermines financial resilience and capacity to absorb shocks or sustain growth.

3. Cash Flow Assessment:
   Liquidity is critically constrained as current liabilities (£1,776) far exceed current assets (£0.10), yielding a negative working capital position of £-1,776. The lack of current assets and no employees implies minimal operational activity, likely no internal cash generation, and significant dependence on external funding or shareholder support. No cash reserves or liquid assets are visible to cover short-term debts, heightening default risk.

4. Monitoring Points:

• Improvement in net current assets and working capital position
• Evidence of positive cash flows from operations or capital injections
• Changes in shareholder funding or debt structure to stabilize equity
• Any increase in operational scale such as hiring or revenue growth
• Timely filing of accounts and confirmation statements to maintain compliance