SEAGATE ESTATES LTD

Executive Summary

Seagate Estates Ltd is currently financially weak with negative net assets and significant liquidity constraints, raising concerns about its ability to meet short-term obligations. The company’s negative working capital and worsening equity position suggest a high risk for credit extension. Without clear improvement in cash flow or capital structure, credit facilities should be declined at this stage.

SEAGATE ESTATES LTD - Analysis Report

Company Number: 13833714

Analysis Date: 2025-07-20 13:58 UTC

1. Credit Opinion: DECLINE
   Seagate Estates Ltd is a micro-entity with negative net assets of £10,353 as at 31 January 2025, worsening from a negative £6,537 the previous year. The company shows an increasing deficit position with current liabilities (£14,174) significantly exceeding current assets (£1,391), resulting in a negative net working capital of £12,783. This indicates poor liquidity and an inability to meet short-term obligations from current resources. The absence of profitability data suggests no visible profit generation and the directors have not audited the accounts, limiting transparency. Given the negative equity and increasing short-term creditor pressures, the company lacks the financial strength to support new credit without significant risk.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Fixed assets are minimal (£2,430) and have decreased slightly from prior years. Current assets remain low, primarily cash and debtors, insufficient to cover creditors due within one year. The persistent and growing negative net assets position indicates accumulated losses or deficit financing. Shareholders' funds are negative, reflecting erosion of capital. The company’s micro classification and recent incorporation (2022) mean it is still in an early, fragile stage with limited financial history and resources.

3. Cash Flow Assessment:
   Liquidity is a critical concern. Current liabilities nearly 10 times current assets suggest significant working capital constraints. The negative net current assets of £12,783 imply the company may struggle to pay suppliers and short-term creditors on time. The accounts do not provide explicit cash flow statements, but the working capital structure points to potential cash flow shortages. The increase in current liabilities year-over-year signals rising obligations, which may stress operating cash flows unless promptly addressed.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction in current liabilities.
• Monitor any new filings for profitability or cash flow statements to assess operational cash generation.
• Review director actions for capital injections or creditor negotiations to improve liquidity.
• Track timely submission of accounts and confirmation statements to avoid compliance risks.
• Assess any changes in ownership or management that could affect credit risk profile.