PREDATORS TRANSFORMATIONS LIMITED

Executive Summary

Predators Transformations Limited is a newly established micro-entity with a negative net asset position and insufficient liquidity to cover current liabilities, indicating a weak financial foundation. The company’s financial data suggests high credit risk and inability to service debt without additional capital support. Credit facilities are not recommended at this stage without significant improvement in financial strength and cash flow.

PREDATORS TRANSFORMATIONS LIMITED - Analysis Report

Company Number: 15214350

Analysis Date: 2025-07-20 11:52 UTC

1. Credit Opinion: DECLINE. Predators Transformations Limited is a very recently incorporated micro-entity (started October 2023) operating in the sports club activities sector. The latest accounts to 31 October 2024 reveal a weak financial position with net liabilities of £2,474. Current liabilities exceed current assets by £4,600, indicating poor short-term liquidity. The company’s negative working capital and net asset deficiency signal an inability to service debt or absorb financial shocks at present. Given its embryonic stage and fragile balance sheet, extending credit would carry high risk.

2. Financial Strength: The balance sheet shows fixed assets of £3,566 but current assets of only £1,975 against current liabilities of £6,575. This means the company has insufficient liquid resources to cover short-term obligations, resulting in negative net current assets. Total net assets and shareholders’ funds are negative at (£2,474), reflecting accumulated losses or funding shortfalls in the initial operating period. The negative equity indicates the company is currently undercapitalized.

3. Cash Flow Assessment: The accounts do not provide detailed cash flow statements, but the working capital deficit and negative net assets imply constrained liquidity. The company’s average employee count is 3, suggesting some ongoing operational expenses. Without sufficient current assets or cash reserves, the company may struggle to meet creditor payments or operational costs without additional capital injections. Monitoring cash burn and funding sources is critical.

4. Monitoring Points:

• Future trading results and profitability to move balance sheet into positive equity territory.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Cash flow management and potential need for external financing.
• Director’s ability to inject funds or secure guarantees.
• Any changes in business scale or diversification beyond initial activities.
• Payment performance on trade and supplier obligations.