SILVANESS LIMITED

Executive Summary

SILVANESS LIMITED presents a weak financial profile characterized by negative net assets and poor liquidity, with current liabilities nearly matching fixed assets and no current assets to cover short-term debts. The company’s micro size, absence of employees, and lack of cash reserves raise significant concerns about its ability to service debt or sustain operations. Given these factors, credit approval is not recommended without substantial financial restructuring or capital infusion.

SILVANESS LIMITED - Analysis Report

Company Number: SC690554

Analysis Date: 2025-07-20 14:01 UTC

1. Credit Opinion: DECLINE. SILVANESS LIMITED shows a severely imbalanced financial position as of its latest accounts dated 28 February 2024. The company has a large amount of fixed assets (£715k) but an almost equivalent current liabilities figure (£716k), resulting in negative net current assets of -£716k and overall negative net assets of -£1,465. There is no current asset buffer (no cash or receivables) to cover short-term liabilities, indicating liquidity strain. The company is micro-sized with no employees, suggesting limited operational capacity. The sharp increase in fixed assets between 2023 and 2024 without corresponding liquidity or equity improvement raises concerns about asset financing and business sustainability. Without evidence of positive cash flow or stronger equity, the company’s ability to service debt or meet commercial obligations is doubtful.

2. Financial Strength: The company’s balance sheet is weak. Despite an increase in fixed assets, net assets have deteriorated into negative territory. The absence of current assets and the presence of current liabilities exceeding fixed assets indicate poor working capital management and potential solvency risk. Shareholders’ funds remain nominal (£20 share capital) and insufficient to absorb liabilities or fund growth. No long-term liabilities or provisions are reported, but the negative net asset position implies potential financial distress.

3. Cash Flow Assessment: No current assets reported suggest zero cash or equivalents, and with current liabilities at £716k, SILVANESS lacks liquidity to cover short-term debts. The lack of employees and no reported revenue or turnover data imply minimal operational cash inflows. The company may be asset-heavy but cash-poor, which is a critical weakness for meeting immediate obligations or unexpected expenses.

4. Monitoring Points:

• Liquidity position and current asset generation (cash, receivables) to improve working capital.
• Changes in current liabilities levels and any refinancing arrangements.
• Evidence of revenue or cash inflows to support debt servicing capability.
• Management actions regarding the large increase in fixed assets and its funding.
• Shareholders’ funds or capital injections to restore positive net asset position.
• Filing of future accounts for trend analysis on financial health trajectory.