SHOTZ MEDTECH LTD

Executive Summary

Shotz International Ltd presents a weak credit profile characterized by consistent negative net assets and working capital deficits, indicating poor financial health and liquidity constraints. The company’s small scale and ongoing losses undermine its ability to service debt, leading to a declining credit recommendation. Close monitoring of liquidity and capital structure is essential if credit exposure is considered.

SHOTZ INTERNATIONAL LTD - Analysis Report

Company Number: 13056507

Analysis Date: 2025-07-29 13:32 UTC

1. Credit Opinion: DECLINE
   Shotz International Ltd demonstrates persistent net current liabilities and negative net assets over four consecutive years, indicating ongoing financial distress and insufficient working capital to meet short-term obligations. The company’s balance sheet shows a deteriorating position, with net liabilities increasing from £3,002 in 2022 to £3,440 in 2023. This weak financial footing raises concerns about their ability to service any new credit facilities or repay existing obligations reliably. Given the absence of positive equity and ongoing losses implied by negative reserves, extending credit would entail significant risk.

2. Financial Strength:
   The company is categorized as a micro-entity with minimal share capital (£100) and no fixed assets disclosed. Current assets have decreased from £4,449 in 2020 to £1,760 in 2023, while current liabilities have remained relatively steady around £5,100-£5,200. This results in net current liabilities, indicating an inability to cover short-term debts with liquid assets. The negative shareholders’ funds (equity) reflect accumulated losses or insufficient capital injection. The lack of fixed assets and negative net assets suggest a fragile capital structure vulnerable to operational disruptions.

3. Cash Flow Assessment:
   The working capital position is consistently negative, with current liabilities approximately three times the current assets in the latest reporting period. This implies liquidity constraints and potential cash flow difficulties in meeting immediate obligations such as supplier payments and short-term debts. The company’s micro status and small employee base (average 2 employees) suggest limited operational scale, restricting cash inflows. Without evidence of improving cash conversion or financing support, liquidity risk remains high.

4. Monitoring Points:

• Track changes in net current assets and net liabilities in future filings to assess any improvement or further deterioration.
• Monitor cash flow statements (if available) for operational cash generation trends.
• Watch for any capital injections or director loans that may temporarily support liquidity.
• Review payment performance on trade creditors and any adverse credit events or late payments.
• Keep abreast of changes in directors or control structure that might influence financial strategy.