REVERSE PARADISE LTD

Executive Summary

Reverse Paradise Ltd is an early-stage micro-entity exhibiting negative net assets and a working capital deficit, indicating weak financial strength and limited liquidity. Given its current financial position and limited operating history, credit facilities should be declined until demonstrable improvement in financial health and cash flow capacity is evident. Close monitoring of future financial performance and management actions is essential before reconsidering credit exposure.

REVERSE PARADISE LTD - Analysis Report

Company Number: 14761745

Analysis Date: 2025-07-20 12:22 UTC

1. Credit Opinion: DECLINE
   Reverse Paradise Ltd is a newly incorporated micro-entity with an active status but demonstrates weak financial health. The company’s net liabilities of £7,008 and negative net current assets of £6,625 indicate an inability to cover short-term obligations from current assets. The absence of positive equity and working capital shortfall raise concerns about its capacity to meet debt repayments or commercial credit terms. Given its early stage and financial position, the company currently lacks sufficient financial resilience or proven management track record for credit approval.

2. Financial Strength:
   The balance sheet reveals net liabilities and negative shareholders’ funds, which is typical for a start-up but signals a fragile financial base. Total current liabilities (£9,065) exceed current assets (£2,440), resulting in a working capital deficit. There are no fixed assets or long-term investments reported, and the company relies on capital injections or external funding to sustain operations. The small employee base (2) and micro-entity status limit scale and operational capacity.

3. Cash Flow Assessment:
   Current liquidity is constrained as reflected by the negative net current assets position. The company’s ability to generate cash internally is unproven due to its recent incorporation and limited operating history. The lack of cash reserves and the working capital deficit suggest potential difficulties in meeting short-term creditor demands. No audit or detailed cash flow statement is available, restricting deeper cash flow analysis.

4. Monitoring Points:

• Monitor subsequent filings for improvement in net assets and working capital position.
• Track revenue growth and cash generation from operations to assess business viability.
• Review management actions to reduce liabilities and increase liquidity.
• Observe any changes in director or shareholder structure that may impact financial stability.
• Watch for timely filing of accounts and confirmation statements to avoid regulatory penalties.