Company Number: 14070962

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: DECLINE
   Q.I.B Estates Ltd shows persistent net liabilities and negative shareholders’ funds over the last three financial years since incorporation in 2022. The net current liabilities position worsened from -£12 in 2023 to -£883 in 2024, indicating deteriorating short-term liquidity. The company relies heavily on a director’s loan account (£6,386 in 2024), which raises concerns about external debt servicing capability and financial independence. There is no indication of profitability or cash flow generation, and no employees are reported, limiting operational capacity. Given these factors, the company is not in a position to service new credit facilities without significant improvement or external guarantees.

2. Financial Strength:
   The balance sheet is weak, with net liabilities of £883 as of April 2024 and no fixed assets reported. Current assets consist solely of cash (£5,996) which is insufficient to cover current liabilities (£6,879). The director’s loan account forms the bulk of short-term liabilities, evidencing dependence on related party funding rather than sustainable financing. Shareholders’ funds remain negative, reflecting accumulated losses and no equity injections beyond nominal share capital (£1). The company is classified as a micro-entity, limiting the scope of detailed financial disclosures, but the trend signals financial strain.

3. Cash Flow Assessment:
   Cash decreased significantly from £20,001 in 2023 to £5,996 in 2024, indicating cash outflows exceeding inflows over the period. Negative net current assets highlight inadequate working capital to meet immediate obligations. Absence of employees and limited operational scale suggest minimal business activity and cash generation capability. The reliance on director’s loans suggests cash injections are informal and may not be sustainable. This cash flow position presents a risk for any credit extension without clear plans for improved liquidity or revenue generation.

4. Monitoring Points:

• Monitor improvements in working capital and net current assets to positive territory.
• Track cash flow trends and dependence on director loans or other related party funding.
• Review any new financial or business developments that impact revenue or profitability.
• Watch for timely payment of liabilities and avoidance of overdue filings or financial distress signals.
• Assess any changes in director involvement or equity injections that could strengthen capital structure.