SALGEZ LIMITED

Executive Summary

Salgez Limited is a newly established micro-entity exhibiting negative net assets and substantial current liabilities exceeding fixed assets. The company currently lacks the financial capacity to service debt or absorb operational risks, making credit approval unsuitable at this time. Continuous monitoring of liquidity improvements and capital restructuring is essential before reconsidering credit exposure.

SALGEZ LIMITED - Analysis Report

Company Number: 15012153

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: DECLINE
   Salgez Limited, incorporated in July 2023, is a very new micro-entity showing significant financial distress as per the latest accounts dated 31/07/2024. The company has net current liabilities of £474,657 and overall net liabilities of £11,457 despite holding fixed assets valued at £463,200. Negative working capital and net liabilities indicate the company is currently unable to meet short-term obligations without additional funding. Given the lack of historical financial performance, negative equity position, and no evidence of positive cash flow, the risk of credit exposure is high. Approval for credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals a concerning financial structure. Fixed assets (£463,200) are outweighed by current liabilities (£474,657), resulting in negative net current assets of £474,657 and negative net assets of £11,457. The negative equity suggests accumulated losses or undercapitalization. Since the company only employs one person and is newly incorporated, it likely lacks operational scale and resilience. There is no indication of retained earnings or positive reserves to buffer against financial shocks.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the balance sheet position with significant current liabilities exceeding current assets implies liquidity constraints. Negative working capital means the company may struggle to cover short-term debts as they fall due. This situation typically necessitates external financing or capital injection to sustain operations. Without evidence of improving cash flows or imminent funding, liquidity risk is elevated.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction of current liabilities in future filings.
• Monitor cash flow statements when available for operational cash generation.
• Track any capital injections or related party loans that may improve liquidity.
• Observe director and PSC activities for signs of financial restructuring or new business contracts.
• Verify timely filing of accounts and returns to ensure compliance and transparency.