SBL HOLDINGS LIMITED

Executive Summary

SBL Holdings Limited exhibits weak financial health characterized by negative equity, minimal liquidity, and reliance on creditor funding, which undermines its ability to service debt. As a recently established entity with no profitability data, it presents a high credit risk. Without significant improvement in cash flow and equity, credit facilities should be declined at this stage.

SBL HOLDINGS LIMITED - Analysis Report

Company Number: 14483894

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: DECLINE
   SBL Holdings Limited is a newly incorporated company (Nov 2022) operating in renting and leasing of construction machinery. The company shows significant net liabilities (£4,270) and net current liabilities (£46) as of 30 November 2023. It has no employees and minimal current assets (£342), insufficient to cover short-term obligations (£388). The large long-term creditor balance (£19,000) indicates reliance on external funding or loans. The absence of income statement data and lack of profitability evidence further weaken creditworthiness. Given the negative equity and weak liquidity, the company currently lacks financial resilience and capacity to service debt reliably.

2. Financial Strength:
   The balance sheet reveals tangible fixed assets of £14,776 net, which suggests investment in machinery. However, accumulated depreciation of £3,694 reduces asset value. The company’s total liabilities exceed total assets by £4,270, indicating insolvency on a balance sheet basis. The capital structure is weak with negative retained earnings and minimal share capital (£1). The company is unprofitable or has incurred losses since inception, reflected by negative shareholders’ funds.

3. Cash Flow Assessment:
   Cash at hand is only £325 against current liabilities of £388, resulting in a slight working capital deficit. Debtors are nominal (£17), indicating negligible receivables. The company’s cash position is inadequate to manage short-term obligations comfortably. Given the industry, cash flow volatility is likely, and the current liquidity position does not provide a sufficient buffer. The company appears reliant on creditor funding to finance operations.

4. Monitoring Points:

• Improvement in net asset position and reduction of negative equity
• Positive operating cash flow generation and increased liquidity
• Profitability evidence in future income statements
• Changes in creditor balances and the nature of long-term debt
• Any new capital injections or shareholder funding
• Director’s ability to manage working capital and financial controls