Company Number: 12812298

Analysis Date: 2025-07-19 12:20 UTC

1. Credit Opinion: DECLINE
   SKYE GLOBAL LTD demonstrates a worsening liquidity position with current liabilities far exceeding current assets as of the latest financial year (2024). The net current liabilities are approximately £41,001, which has nearly doubled from £21,958 in 2023, indicating increasing short-term funding gaps. Despite reported net assets being positive on the balance sheet, the presentation here is unusual (negative total net assets and capital and reserves figures) and suggests potential reporting inconsistencies or distress. The company’s ability to meet short-term obligations is questionable, and the substantial rise in creditors within one year raises concerns about cash flow management and supplier confidence. Given these signs, extending credit without additional security or guarantees is not advisable.

2. Financial Strength:
   Fixed assets are minimal and stable (£246 in 2024), indicating little tangible collateral. The company is classified as a micro-entity with low capital (£100 share capital). Net assets have increased over recent years from £490 in 2021 to £41,655 in 2024, but this increase is overshadowed by the significant jump in current liabilities, which suggests the company might be relying heavily on short-term credit or has accrued substantial payables. The balance sheet shows a deteriorating working capital position, which undermines financial stability. No evidence of external financing or equity injections is apparent beyond the initial share capital.

3. Cash Flow Assessment:
   Current assets rose to £12,463 in 2024 from £1,711 in 2023, largely driven by debtors or cash equivalents; however, current liabilities have increased more than proportionally to £53,464 from £23,669. The resulting negative net current assets (working capital) of £41,001 signals insufficient liquidity to cover short-term debts. The average employee count is low (2 employees), which limits fixed overheads but does not compensate for the high creditor balances. Without detailed cash flow statements, it is likely the company experiences cash flow strain, which could lead to payment delays or defaults.

4. Monitoring Points:

• Monitor current liabilities and creditor aging closely to detect early signs of payment distress.
• Track cash flow trends and liquidity ratios quarterly to assess improvement or further deterioration.
• Review management actions to reduce creditor balances and improve working capital.
• Watch for timely submission of future accounts and confirmation statements as a proxy for management diligence.
• Evaluate any operational or strategic changes following the recent company name change (from PIZZA DUDE LIMITED to SKYE GLOBAL LTD) for impact on credit risk.