NIMROUX LTD

Executive Summary

NIMROUX LTD shows weak financial health with negative net assets and a critical liquidity shortfall. The company’s substantial long-term liabilities against modest liquid assets undermine its ability to service debt, posing high credit risk. Without evidence of improved cash flow or capital support, credit extension is not recommended at this time.

NIMROUX LTD - Analysis Report

Company Number: 13566072

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: DECLINE
   NIMROUX LTD presents a high credit risk primarily due to significant negative net assets and excessive current liabilities relative to current assets. The company's net liabilities position (£66,354 negative equity) and very large amounts falling due after more than one year (£1.38m) versus relatively modest current assets (£108.5k) indicate weak financial resilience and insufficient capital buffer. Although investment property assets appear substantial (£1.2m), the heavy creditor burden suggests liquidity stress and difficulty in meeting debt obligations without restructuring or capital injection. The absence of cash liquidity (only £576) exacerbates repayment risk. The directors, who hold significant control, have not demonstrated improved equity or working capital during the latest year. Overall, the company's financial position is fragile and not supportive of new credit without significant mitigation or security.

2. Financial Strength:
   The balance sheet shows investment property valued at £1.2m, which is the main asset base. However, the company’s net liabilities and negative shareholders’ funds highlight insolvency on a balance sheet basis. Current liabilities of £1.38m far exceed current assets (£108.5k), though net current assets are shown positive due to creditor classification nuances; the statement likely reflects some creditors falling due after one year. The accounting policy notes a historical cost basis with investment property at fair value, but no auditor scrutiny has been applied (accounts unaudited). The company’s equity deteriorated from negative £24k to negative £66k in one year, indicating losses or increased liabilities outpacing asset growth. No employees are reported, so operational scale is minimal.

3. Cash Flow Assessment:
   The cash position is critically weak at £576, insufficient for meeting short-term liabilities of over £1.3m. Debtors increased significantly to £108k from £6k last year, which may improve liquidity if collectible, but collection risk remains unknown. The lack of positive cash flow or working capital cushion raises concerns about the company’s ability to service debts, meet operational expenses, or withstand economic downturns without refinancing or equity support. The company's reliance on investment property suggests income may be rental-based, but no income or P&L details have been provided to confirm cash flow stability.

4. Monitoring Points:

• Track changes in net assets and equity position to detect capital improvements or further deterioration.
• Monitor liquidity trends, especially cash and debtor collections, to assess short-term credit risk.
• Review any changes to creditor terms, including refinancing or restructuring of long-term liabilities.
• Watch for director actions or external financing that may enhance solvency.
• Assess rental income stability from investment properties and any impact on cash flow generation.
• Ensure timely filing compliance continues, as overdue filings could indicate management distress.