SHUTTER 24 LTD

Executive Summary

Shutter 24 Ltd is currently in a financially distressed position with negative net assets and poor liquidity, raising significant doubts about its ability to meet short-term obligations. The company’s minimal cash reserves and increasing liabilities suggest cash flow difficulties with no clear signs of recovery. Credit extension is not recommended without substantial improvement in financial health and operational viability.

SHUTTER 24 LTD - Analysis Report

Company Number: 13965154

Analysis Date: 2025-07-20 18:28 UTC

1. Credit Opinion: DECLINE
   Shutter 24 Ltd shows significant financial distress with worsening net current assets and net liabilities. The latest accounts reveal a negative net asset position of £70 against only £5 in cash and current liabilities of £75. This indicates an inability to meet short-term obligations from liquid resources. The company has no employees and minimal operational scale, which raises concerns about business viability and capacity to generate revenue. The director is the sole shareholder and control holder, but there is no evidence of financial turnaround or resilience. Given the negative equity, poor liquidity, and lack of operational scale, extending credit is not advisable at this stage.

2. Financial Strength:
   The balance sheet shows a deteriorating financial position over two years: net assets declined from £10 to -£70, and net current assets from £10 to -£70. Shareholders’ funds are negative indicating accumulated losses exceeding capital. The company holds minimal cash (£5) against current liabilities of £75, evidencing liquidity strain. No fixed assets or other tangible long-term assets are reported, further weakening financial strength. This fragile financial base suggests high risk of insolvency if liabilities crystallize or cash flow issues persist.

3. Cash Flow Assessment:
   Cash on hand remains nominal at £5 for the past two years, while current liabilities have increased substantially to £75. Negative net current assets indicate working capital deficiency, and the company likely faces cash flow constraints. There is no indication of positive operating cash flow or cash reserves to manage short-term creditor demands. The lack of employees and minimal operational activity suggest limited revenue generation capacity to improve liquidity. This cash flow profile is inadequate to support debt servicing or credit facility repayment.

4. Monitoring Points:

• Net current assets and liquidity position: Watch for any improvement in cash balances versus current liabilities.
• Profitability indicators and retention of earnings: Monitor if losses reduce and reserves improve from negative territory.
• Operational activity and employee count: Any hiring or revenue generation could signal potential recovery.
• Director and shareholder actions: Look for capital injections or restructuring plans to restore financial health.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance and transparency.