PLAYMAS TECH (UK) LTD

Executive Summary

PLAYMAS TECH (UK) LTD shows deteriorating financial health with negative net assets and insufficient liquidity, indicating inability to meet debt obligations. The company’s micro scale and limited resources denote high credit risk. Without evidence of operational improvement or capital support, credit facilities should be declined.

PLAYMAS TECH (UK) LTD - Analysis Report

Company Number: 13499041

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

1. Credit Opinion: DECLINE
   PLAYMAS TECH (UK) LTD demonstrates extremely weak financial health, highlighted by negative net current assets and net liabilities of £690 as at 31 July 2024, worsening from prior years. The company’s cash and current assets are negligible (£2), while current liabilities are significant (£692), indicating inability to meet short-term obligations. There is no evidence of profitability or cash generation; the business appears undercapitalized and reliant on external support. Given the micro-entity status and minimal operations (1 employee), the company lacks financial resilience. Without clear prospects for turnaround or additional capital injection, credit extension would be high risk.

2. Financial Strength:
   The balance sheet is fragile with negative working capital and net liabilities increasing from -£357 in 2023 to -£690 in 2024. No fixed assets or other tangible resources are reported to support operations or provide collateral. Shareholders’ funds are negative, reflecting accumulated losses or capital erosion. The company’s micro status and minimal asset base suggest limited capacity to withstand financial stress or fund growth.

3. Cash Flow Assessment:
   Current assets of £2 against current liabilities of £692 indicate severe liquidity constraints. The company cannot cover its short-term debts from available liquid resources. Absence of cash reserves or receivables raises concerns about operational cash flow sufficiency. The minimal employee count and lack of significant financial activity imply limited income generation, increasing reliance on external financing or shareholder support to meet obligations.

4. Monitoring Points:

• Watch for improvements in net current assets and positive working capital generation.
• Monitor any capital injections or loans from shareholders or third parties to improve liquidity.
• Track revenue growth and profitability indicators to assess operational viability.
• Review director conduct and fund flows given the small scale and concentrated ownership.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.