REGENERAFT LTD

Executive Summary

Regeneraft Ltd exhibits severe financial distress with negative equity and insufficient liquidity to meet current obligations, indicating a high credit risk profile. The company’s financial trajectory is negative, with deteriorating balance sheet metrics and no operational scale to support cash flow. Credit facilities should be declined unless significant financial and operational improvements occur.

REGENERAFT LTD - Analysis Report

Company Number: 13514461

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: DECLINE
   Regeneraft Ltd shows significant financial distress with negative shareholders' funds of £103,338 as of June 2024 and current liabilities of £105,624 vastly exceeding current assets of only £2,286. This indicates poor liquidity and an inability to meet short-term obligations. The company has no employees and minimal operational scale, suggesting limited business activity to generate cash flow. Despite recent change in ownership, the financial position reflects high risk with no clear path to profitability or debt servicing capacity. Approval of credit facilities is not recommended without substantial improvement in financial health or credible turnaround plans.

2. Financial Strength:
   The company’s balance sheet is weak and deteriorating. Shareholders' funds moved from a positive £1 in 2023 to a negative £103,338 in 2024, reflecting accumulated losses or write-downs. Current liabilities have nearly tripled from £35,825 to £105,624, while current assets have collapsed from £35,826 to a mere £2,286. There are no fixed assets or long-term investments reported, and no retained earnings, underscoring a fragile capital structure. The absence of net assets and negative equity position signals insolvency risk without external capital injection.

3. Cash Flow Assessment:
   Liquidity is critically constrained with only £2,286 in current assets against large current liabilities. The company’s ability to generate cash internally appears non-existent, given zero employees and minimal operational scale. The sharp reduction in current assets and cash from previous years suggests cash burn or asset disposals. Working capital is deeply negative, indicating an inability to fund day-to-day operations or service debt. There is no evidence of positive cash flow or receivables to support short-term liquidity needs.

4. Monitoring Points:

• Monitor subsequent trading results and cash flow statements for signs of recovery or worsening liquidity.
• Watch for capital injections or restructuring plans from the new ownership (RegenaRaft Group Limited).
• Track any changes in current liabilities levels and creditor arrangements to avoid insolvency triggers.
• Observe timely filing of accounts and confirmation statements as a proxy for ongoing compliance and management oversight.
• Assess any operational developments that could improve revenue generation and working capital.