Company Number: 12507112

Analysis Date: 2025-07-29 16:14 UTC

1. Credit Opinion: DECLINE
   Nakuru Limited exhibits significant financial distress with persistent negative net current assets and shareholders' funds over multiple years. The company's current liabilities have grown substantially, far exceeding its cash and liquid assets, indicating a poor short-term liquidity position and an inability to meet immediate obligations. The lack of profitability data and continued erosion of equity suggest insufficient financial resilience. Without evidence of improving cash flows or capital injection, the risk of default is high, warranting a decline for new credit facilities.

2. Financial Strength:
   The balance sheet shows tangible fixed assets valued at £392,314 as of 31 March 2025, mainly comprised of land and buildings, which are not depreciated. However, these fixed assets are heavily offset by current liabilities of £398,140, resulting in net current liabilities of £396,658 and negative total net assets of £4,344. The company has consistently reported negative shareholders' funds over the last five years, reflecting accumulated losses or insufficient capital. The sizeable increase in current liabilities from £258,097 in 2024 to £398,140 in 2025 without a corresponding increase in current assets signals worsening financial leverage.

3. Cash Flow Assessment:
   Cash on hand is critically low at £1,482, insufficient to cover the immediate liabilities due within one year. The company appears to be reliant on credit or deferred payments to sustain operations. The negative net current assets indicate working capital deficiency and poor liquidity management. No detailed profit and loss or cash flow statements are available, but the trend in balance sheet numbers strongly suggests negative operating cash flows and potential cash flow stress.

4. Monitoring Points:

• Track changes in current liabilities and ensure they do not continue to outpace asset growth.
• Monitor cash balances closely to detect liquidity strain early.
• Obtain profit and loss data to assess operational performance and cash generation capacity.
• Review any plans for capital injection or asset disposals that could improve equity and liquidity.
• Watch for overdue filings or any signs of director or management changes that may impact stability.