Company Number: SC692055

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: DECLINE
   Scruffed Up Limited exhibits a persistently weak financial position with negative net assets and net current liabilities over multiple years, indicating poor capital structure and ongoing liquidity issues. The company’s inability to generate positive working capital and accumulated losses suggest a high risk of default on credit facilities. Given these factors and the fact that it is a micro-entity with a single director and employee, the company lacks financial resilience and operational scale to support additional credit without substantial improvement or external guarantees.

2. Financial Strength:
   The balance sheet shows net liabilities of £1,599 as of the latest financial year ending March 2024, a marked improvement from prior years but still negative. Fixed assets are negligible (£226), and current liabilities (£3,653) exceed current assets (£1,828), resulting in negative net current assets of £1,825. The consistent negative shareholders’ funds indicate accumulated losses with no equity buffer to absorb shocks. The minimal share capital of £1 underscores the very small equity base.

3. Cash Flow Assessment:
   The company’s negative working capital position and ongoing net liabilities indicate strained liquidity, likely causing cash flow pressures. Current liabilities have decreased significantly from £7,560 (2023) to £3,653 (2024), which may reflect creditor settlements or reduced operations, but current assets have only modestly increased. The absence of detailed cash flow statements limits full assessment; however, the trend suggests insufficient liquidity to comfortably meet short-term obligations without external support.

4. Monitoring Points:

• Improvement in net current assets and net liabilities to positive territory.
• Stabilization or growth in current assets relative to current liabilities.
• Evidence of profitable trading and positive cash flows from operations.
• Any capital injections or external funding to strengthen equity.
• Changes in director or ownership structure that may impact governance or financial strategy.