SEDULOS GROUP LTD

Executive Summary

Sedulos Group Ltd’s financials reflect significant deterioration in liquidity and net assets over the past year, with a negative working capital position and minimal cash reserves. The company’s capacity to meet short-term obligations appears constrained, raising concerns about repayment ability and business resilience. Without improvements in cash flow or capital structure, credit exposure carries elevated risk.

SEDULOS GROUP LTD - Analysis Report

Company Number: 13115378

Analysis Date: 2025-07-20 13:02 UTC

1. Credit Opinion: DECLINE. Sedulos Group Ltd shows a deteriorating financial position with net current liabilities of £69 at 31 January 2024, down from net current assets in prior years. The company has a very modest equity base (£1,979) which has declined significantly from £8,143 in 2023. The cash balance is minimal (£372), and trade debtors have halved year-on-year, suggesting reduced sales or collection issues. Current liabilities remain substantial (£28,401) relative to current assets (£28,332). These factors imply potential liquidity stress and an inability to comfortably meet short-term obligations. The small scale of operations (one employee) and absence of detailed income statement data further reduce confidence in repayment capacity.

2. Financial Strength: The balance sheet shows a shrinking capital base and declining net assets, from £8,143 in 2023 to £1,979 in 2024. Fixed assets have reduced by about 30%, and current assets have dropped by over 50%, largely due to a decrease in debtors and cash. Current liabilities have also decreased but remain nearly equal to current assets, resulting in a negative working capital position for the latest year. This erosion of shareholders’ funds and working capital indicates weakened financial resilience and limited buffer to absorb operational or economic shocks.

3. Cash Flow Assessment: Cash on hand is extremely low at £372, which is insufficient to cover current liabilities of £28,401. The company’s working capital is negative, indicating potential liquidity challenges. The substantial drop in debtors suggests either reduced sales or aggressive collection, but with little cash conversion evident. Without audited profit and loss data, it is unclear if the company is generating positive operating cash flows. The minimal employee count and small asset base imply limited operational scale to generate sustainable cash inflows.

4. Monitoring Points:

• Monitor monthly cash flow and liquidity ratios closely to detect signs of stress.
• Track debtor aging and collection effectiveness to ensure receivables convert to cash promptly.
• Review any changes in creditor terms or payment delays that may indicate supplier concerns.
• Watch for further erosion of equity or working capital deficits that could precipitate insolvency risks.
• Assess management actions to improve profitability or reduce liabilities.