SK01 SERVICES LTD

Executive Summary

SK01 Services Ltd is a start-up micro-entity with very limited financial history and minimal net assets. While the director has provided financial support, liquidity is tight and operational cash flow is unproven. Credit approval can be considered with conditions and close monitoring of financial performance and liquidity going forward.

SK01 SERVICES LTD - Analysis Report

Company Number: 14862665

Analysis Date: 2025-07-20 17:15 UTC

1. Credit Opinion: CONDITIONAL APPROVE
   SK01 Services Ltd is a newly incorporated micro-entity with minimal operating history, which limits the ability to fully assess its creditworthiness. The company shows a positive, albeit negligible, net current asset position (£1) and minimal equity (£1). The director has advanced funds to support operations, indicating management commitment. However, the very limited financial scale and lack of trading history require cautious credit extension, preferably with conditions such as limits on exposure and periodic financial reviews.

2. Financial Strength:
   The balance sheet reflects a micro-scale operation with current assets of £3,720 against current liabilities of £3,719, resulting in net current assets of £1. The company’s total net assets stand at £1, all represented by shareholder funds, which is minimal and typical for a start-up. The director’s loan of £2,380 shows some external funding, but overall financial resources are very modest. There are no fixed assets, and no retained earnings as the company is in its first financial period.

3. Cash Flow Assessment:
   Cash and other current assets are just sufficient to cover current liabilities, suggesting tight liquidity with virtually no working capital cushion. The company depends on director funding for ongoing operations, which is a risk factor if the director withdraws support. There is no evidence yet of operating cash flow generation. Monitoring cash flow closely and ensuring working capital adequacy will be critical.

4. Monitoring Points:

• Financial performance and cash flow generation in the next 12 months, especially ability to convert sales into cash.
• Ongoing director loan balance and any changes in related party funding arrangements.
• Timely filing of subsequent annual accounts and confirmation statements.
• Changes in current liabilities and liquidity ratios.
• Any growth in turnover and profitability indicating business viability.
• Market and sector risks related to specialised construction activities (SIC 43999).