RESALA LTD

Executive Summary

Resala Ltd is a newly incorporated micro-entity with negative net assets and a working capital deficit, indicating weak financial health and liquidity risk. The company’s current financial profile suggests it is not yet in a position to reliably service debt or credit obligations. Credit facilities are not recommended at this time without significant financial improvement or external support.

RESALA LTD - Analysis Report

Company Number: 14431740

Analysis Date: 2025-07-20 12:24 UTC

1. Credit Opinion: DECLINE
   Resala Ltd shows a negative net asset position of approximately £199k as of the latest accounts dated 31 Dec 2023, with net current liabilities of £690k. The company's liabilities exceed its assets, indicating weak financial solvency. Negative shareholders’ funds and working capital deficits raise strong concerns about its ability to meet short-term obligations and service any credit facilities. The absence of employees and limited operational scale (micro-entity status) further suggest limited business activity and revenue generation capacity at this stage. Given these factors, extending credit would carry high risk without additional security or guarantees.

2. Financial Strength
   The balance sheet reflects a fragile financial structure. Fixed assets stand at £491k, but current liabilities of £1.79M significantly outweigh current assets of £1.1M, resulting in a net current liability position. The company has negative equity, driven by accumulated losses or funding shortfalls. This financial weakness indicates the company is either in early development or struggling to generate sufficient income and cash flow to cover liabilities.

3. Cash Flow Assessment
   Current liabilities surpass current assets, evidencing working capital stress. Negative net current assets mean the company may face liquidity challenges in meeting short-term debts and operational expenses without external funding. There is no indication of employees or operating cash flow generation. Without a clear cash inflow source, the company’s cash flow position is precarious.

4. Monitoring Points

• Regular review of updated financial statements to track any improvements in net assets and working capital.
• Watch for any changes in shareholder funding or capital injections that could stabilize finances.
• Monitor payment records and creditor relationships for signs of delayed payments or defaults.
• Keep an eye on director actions and business activities indicating progress toward profitability or operational scaling.