SCATTERLIGHT DEVELOPMENTS LTD

Executive Summary

Scatterlight Developments Ltd remains dormant with a deteriorating negative net asset base and minimal operational activity, indicating very weak financial health and no current capacity to service debt. The company is not suitable for credit extension at this time. Close monitoring of any transition to active trading and financial improvements is recommended before reconsidering credit risk.

SCATTERLIGHT DEVELOPMENTS LTD - Analysis Report

Company Number: 12858052

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: DECLINE
   Scatterlight Developments Ltd is currently classified as a dormant company with no significant trading activity. The company shows persistent negative net assets over the last four years, worsening from -£635K in 2020 to -£2,272K in 2023. This indicates accumulated losses or liabilities exceeding assets, which is a red flag for creditworthiness. Additionally, the company has no reported employees and minimal fixed and current assets, which limits its operational capacity and ability to generate cash flow. Given these factors and the company’s dormant status, it lacks the financial strength and demonstrated ability to service new debt or credit facilities at this time.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Fixed assets have declined slightly from £4,916 in 2020 to £3,305 in 2023, while current assets have remained static at £1,700. However, current liabilities are minimal or reported as zero, but the company carries long-term liabilities of approximately £7,277 in 2023. The net asset position is negative, reflecting cumulative losses or liabilities exceeding equity. The lack of shareholder funds and negative equity undermines the company’s solvency and financial resilience.

3. Cash Flow Assessment:
   The company discloses no employees and is dormant, suggesting no operating cash flow generation. Current assets and liabilities are minimal, with net current assets reported as £1,700, which is insufficient to cover any material operational expenses or debt servicing. There is no indication of receivables or cash balances adequate to support liquidity needs. Consequently, the company’s liquidity position is weak, and it likely depends on external funding or capital injections to meet obligations.

4. Monitoring Points:

• Monitor any change in trading status from dormant to active, including filing of fully prepared accounts reflecting operational results.
• Watch for improvements in net asset position and positive equity movements.
• Track any increase in current assets and cash balances to assess liquidity improvements.
• Review director and shareholder actions for capital contributions or restructuring efforts.
• Confirm timely filing of accounts and confirmation statements to avoid compliance risks.