Company Number: SC768440

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: DECLINE
   Renew Exchange Ltd is a very new company (incorporated May 2023) and its first annual accounts (to May 2024) show severe financial distress. The company reports net liabilities of £14,205 and negative shareholders’ funds, indicating insolvency on a balance sheet basis. Current liabilities of £14,207 far exceed current assets of £2, showing extremely weak liquidity and inability to meet short-term obligations. There is no evidence of revenue, profits, or cash flow generation. Given these facts, the company lacks the capacity to service debt or credit facilities at this time.

2. Financial Strength:
   The company’s balance sheet is highly leveraged with negative net assets (£-14,205) and a negligible asset base (current assets of £2 only). No fixed assets or tangible resources were reported. The share capital is minimal (£2), and accumulated losses have eroded all equity. The absence of positive working capital and net assets indicates very poor financial health and a high risk of failure without substantial capital injection or operational turnaround.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by over £14k, meaning the company has a working capital deficit and negative net current assets. This suggests an inability to cover short-term liabilities as they fall due. No cash reserves or liquid assets are disclosed. The company likely depends on external funding or director loans to meet obligations, which is unsustainable without a proven business model or revenue.

4. Monitoring Points:

• Track future account filings for improvements in net assets and working capital.
• Monitor cash flow statements (when available) for operational cash generation.
• Watch for any capital injections or loans from directors or third parties.
• Assess director conduct and any changes in management or business strategy.
• Review credit payment history for any signs of default or delayed payments.