Company Number: 13186694

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: DECLINE
   NAKATOMI SOLUTIONS LIMITED presents significant credit risk due to persistent and worsening net liabilities and negative shareholders' funds over the last two financial years. The company's net liabilities increased sharply from £1,204 in 2023 to £77,068 in 2024, indicating deteriorating financial health. Current liabilities far exceed current assets, resulting in a large working capital deficit (£152,312 negative in 2024). These factors imply an inability to service debt or meet short-term obligations without external support. The absence of profit and loss details further obscures income generation capacity, increasing uncertainty around cash flow sufficiency.

2. Financial Strength:
   The balance sheet shows fixed assets declining from £105,492 in 2023 to £84,889 in 2024, potentially reflecting disposals or impairment. Current assets remain minimal (~£5,000), while current liabilities have increased significantly from £107,936 to £157,424, worsening liquidity. The working capital position is severely negative, and net liabilities indicate the company is technically insolvent on a balance sheet basis. Shareholders’ funds are deeply negative, signaling accumulated losses. The micro-entity status limits disclosure but the trend in core balance sheet metrics is weak.

3. Cash Flow Assessment:
   Current assets, including presumably cash and receivables, are insufficient to cover short-term liabilities, leading to a liquidity crunch. Negative net current assets imply the company may struggle to meet immediate payment obligations without additional capital or refinancing. The directors have not provided profit and loss accounts, so operational cash flow visibility is lacking, but the worsening balance sheet and growing creditor amounts suggest cash flow stress. The company’s small employee base (2 persons) and low capital base (£2) limit operational scale and financial resilience.

4. Monitoring Points:

• Track subsequent filings for profit and loss details to assess operational profitability.
• Monitor changes in current liabilities and creditor aging to detect worsening payment delays.
• Watch for director or shareholder capital injections or refinancing that might improve liquidity.
• Review future accounts for any audit exemptions removal or going concern qualifications.
• Observe industry activity and economic conditions impacting the company’s three SIC sectors (sports activities, tax consultancy, solicitors) for potential revenue volatility.