Company Number: 13179416

Analysis Date: 2025-07-19 12:47 UTC

1. Credit Opinion: DECLINE
   RE-EVALUATION LTD displays a weak financial position with persistent net current liabilities and negative shareholders' funds, indicating an ongoing capital deficiency. The micro-entity's current liabilities consistently exceed current assets (£7,201 vs £1,536 in 2024), highlighting liquidity constraints and limited ability to meet short-term obligations. There is no audit or profit and loss information to assess operational profitability, and the company has not shown improvement from prior year deficits. The directors are filmmakers with no disclosed financial background, and the company is relatively new (incorporated 2021) operating in a high-risk creative sector. These factors combined suggest inadequate financial resilience and elevated credit risk, leading to a decline recommendation.

2. Financial Strength:
   The balance sheet reveals net liabilities of £5,665 as of 28 February 2024, worsening from £4,331 the prior year. Shareholders’ funds are negative, indicating losses have eroded equity capital. Current liabilities (£7,201) exceed current assets (£1,536), resulting in negative working capital and poor short-term financial health. The company has minimal share capital (£1) and no fixed assets disclosed, suggesting limited tangible collateral. The absence of asset backing and continued net liability position indicates weak capitalization and financial instability.

3. Cash Flow Assessment:
   Current asset levels are extremely low relative to current liabilities, implying tight liquidity and potential difficulty in servicing creditors promptly. The company’s working capital deficit means it likely relies on external funding or creditor extensions to maintain operations. No cash flow statements are available, but the sharp decline in current assets from £45,886 to £1,536 year-on-year signals possible cash burn or asset depletion. This severely restricts operational flexibility and increases default risk on debt or trade payables.

4. Monitoring Points:

• Liquidity ratios and working capital status in future filings to detect improvements or further deterioration.
• Timely submission of accounts and confirmation statements to monitor compliance and governance discipline.
• Changes in share capital or equity injections indicating management attempts to stabilize finances.
• Profitability indicators if disclosed, to assess operational viability.
• Director conduct and changes in management to evaluate governance effectiveness.