SKY HIGH TRADERS LIMITED

Executive Summary

SKY HIGH TRADERS LIMITED is a newly incorporated micro-entity operating in IT services and wholesale trade, currently exhibiting a weak financial position with negative net equity and liquidity shortfalls. The company’s inability to cover its short-term liabilities with current assets signals high credit risk. Without clear evidence of financial improvement or additional capital support, credit facilities are not recommended at this time.

SKY HIGH TRADERS LIMITED - Analysis Report

Company Number: 14562451

Analysis Date: 2025-07-29 18:27 UTC

1. Credit Opinion: DECLINE
   SKY HIGH TRADERS LIMITED shows significant financial weakness with negative net equity (-£16,163) and current liabilities (£60,299) exceeding current assets (£44,136), indicating inadequate working capital and potential liquidity issues. The company is very young (incorporated Dec 2022), with only one year of financial data showing no fixed assets and a negative shareholders' fund. These factors suggest an inability to reliably service debt or honor credit obligations at this stage without substantial improvement or guarantees.

2. Financial Strength:
   The balance sheet as at 31 December 2023 reveals a micro-entity with a fragile financial position. Current liabilities exceed current assets by over £16k, resulting in negative working capital. Shareholders’ funds are negative, implying accumulated losses or initial funding deficits. No fixed assets are reported, meaning limited collateral. The company employs 4 people, suggesting modest operational scale. The absence of audit and the micro-entity filing regime limits detailed insight but the negative equity and working capital are clear red flags.

3. Cash Flow Assessment:
   Current assets of £44,136 likely include cash and receivables but are insufficient to cover current liabilities of £60,299 due within one year. This liquidity mismatch indicates potential cash flow stress. Without additional capital injection or improved sales, the company may struggle to meet short-term obligations. The accounts do not provide cash flow statements, but the working capital deficit is a key concern for credit risk.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds in future filings
• Timely filing of accounts and confirmation statements to ensure compliance and transparency
• Changes in ownership or director appointments that might impact governance or financial control
• Evidence of revenue growth and profitability to restore positive equity and liquidity
• Any material increase in borrowings or delayed payments to creditors