PURE NICO LTD

Executive Summary

PURE NICO LTD is a newly incorporated micro-entity with negative net assets and significant short-term liabilities exceeding current assets, indicating poor liquidity and financial weakness. The company currently lacks the financial strength and cash flow stability to comfortably service debt or credit facilities. Credit approval is not recommended until the company demonstrates improved working capital and equity position.

PURE NICO LTD - Analysis Report

Company Number: 14802438

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: DECLINE
   PURE NICO LTD exhibits a precarious financial position with net current liabilities of £15,880 despite having been incorporated only recently in April 2023. The balance sheet shows total net liabilities of £15,880 as of April 2024. The company's cash and current assets of £2,608 are far outweighed by short-term creditors of £18,488, indicating an inability to meet immediate obligations from liquid resources. Given the negative net assets and absence of any visible profit reserves or fixed assets, there is significant risk in extending credit.

2. Financial Strength:
   The company’s micro-entity balance sheet shows a negative net asset position of £15,880, which directly reflects shareholders’ funds being negative. The absence of fixed assets and minimal current assets suggest that the company is relying on external funding or shareholder loans to finance operations. This weak financial footing is typical for a newly incorporated company but is a concern for lending since there is no equity cushion or tangible assets to secure credit.

3. Cash Flow Assessment:
   Liquidity is a critical concern. The company’s current liabilities exceed current assets by a substantial margin, suggesting working capital deficiency. The minimal current assets (cash/debtors) of £2,608 are insufficient to cover short-term liabilities of £18,488. This implies reliance on additional capital infusion or short-term borrowing to maintain solvency. Without cash flow statements or profit and loss data, it is difficult to assess operational cash generation, but the available data points to poor liquidity.

4. Monitoring Points:

• Improvement in net current assets and positive working capital generation
• Regularization and reduction of short-term creditors to manageable levels
• Evidence of positive cash flow from operations in future periods
• Any capital injections or shareholder loans that improve the equity position
• Timely filing of next accounts and confirmation statements to maintain compliance
• Close monitoring of director’s management actions given controlling interest and sole directorship