Company Number: 13252850

Analysis Date: 2025-07-20 13:38 UTC

1. Credit Opinion: DECLINE
   Sky High Build Ltd demonstrates persistent net liabilities and negative cash balances over multiple years, indicating ongoing financial distress and inability to generate positive working capital. The company has no employees and minimal share capital (£2), suggesting limited operational scale and financial resources. There is no evidence of profitability or asset buildup, and the negative net assets have worsened from -£1,123 in 2021 to -£3,617 in 2024. This raises significant concerns about the company's ability to meet debt obligations or sustain operations without external support.

2. Financial Strength:
   The balance sheet shows consistent net liabilities and negative shareholders' funds, reflecting accumulated losses and insufficient capital base. The absence of fixed assets or significant current assets limits collateral value. The company operates with negative cash positions, and net current assets are negative, indicating inadequate liquidity. The lack of employees and small share capital further constrain financial strength. The company is in the construction sector, which is capital intensive; however, there is no indication of tangible assets or investments to support growth or stability.

3. Cash Flow Assessment:
   Negative cash balances in consecutive years (-£1,122 in 2021 to -£3,617 in 2024) and negative net current assets highlight liquidity challenges. The company likely depends on external financing or shareholder funds to cover short-term obligations. No turnover or profit figures are provided, but the continued erosion of net assets suggests operating cash inflows are insufficient to cover costs. The company's working capital position is weak, with current liabilities exceeding current assets, implying difficulties in meeting immediate liabilities without additional capital injection.

4. Monitoring Points:

• Improvement in net current assets and cash flow from operations
• Evidence of positive turnover and profitability in future accounts
• Capital injections or restructuring plans to restore shareholders’ equity
• Management changes and operational initiatives to enhance business viability
• Any overdue filings or director disqualifications that could indicate governance issues