MODEL ASSET MANAGEMENT LTD

Executive Summary

Model Asset Management Ltd is in a weak financial position with negative net current assets and shareholders’ funds, minimal cash reserves, and no employees or operational revenues. This creates a high risk of default on credit obligations. Therefore, credit approval is declined unless substantial improvements in liquidity and capital structure occur.

MODEL ASSET MANAGEMENT LTD - Analysis Report

Company Number: 14112055

Analysis Date: 2025-07-29 18:01 UTC

1. Credit Opinion: DECLINE
   Model Asset Management Ltd currently demonstrates weak financial health with consistent negative net current assets and shareholders' funds, indicating an erosion of capital and poor liquidity. The company has no employees and minimal cash reserves (£655 as of May 2024) against current liabilities of £9,851, which suggests an inability to meet short-term obligations without additional funding. The lack of turnover and no indication of profitability or cash inflows raises significant concerns about the company’s ability to service any credit facility or repay loans. Given these factors, extending credit would be high risk.

2. Financial Strength:
   The balance sheet shows persistent net current liabilities worsening from (£6,169) in 2023 to (£9,196) in 2024. Shareholders’ funds remain negative at (£9,197), reflecting accumulated losses or undercapitalization. The company has no fixed assets reported and only nominal cash holdings. This weak capital structure and negative equity position undermine the company’s financial resilience and capacity to absorb economic shocks.

3. Cash Flow Assessment:
   Cash on hand is extremely limited (£655), and current liabilities, primarily taxation and social security debts, exceed liquid assets significantly. No working capital buffer exists, and the company has no employees or operational scale to generate cash flow internally. Without external capital injections or improved revenue streams, liquidity risk is high, threatening ongoing operational viability.

4. Monitoring Points:

• Cash position and liquidity trends on a monthly basis.
• Changes in net current assets and shareholders’ funds to detect any capital injections or profitability improvements.
• Payment status of current liabilities, especially tax and social security obligations.
• Any new revenue contracts or operational changes that could improve cash flow.
• Director’s plans or external funding arrangements to address current deficiencies.