SKYLINE OPERATIONS LTD

Executive Summary

Skyline Operations Ltd, a micro-entity incorporated in 2022, exhibits a concerning shift from positive net assets to net liabilities in its latest financial year, highlighting solvency and liquidity risks. While statutory filings are current and governance appears stable, the company’s limited financial history and deteriorated balance sheet warrant careful scrutiny of underlying causes and operational viability. Further due diligence is recommended to clarify the financial decline and assess prospects for recovery.

SKYLINE OPERATIONS LTD - Analysis Report

Company Number: 13942738

Analysis Date: 2025-07-20 16:56 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position in the most recent year, moving from positive net assets of £3,676 in 2024 to net liabilities of £2,779 in 2025. This indicates solvency risk as liabilities now exceed assets.

2. Key Concerns:

• Negative Net Assets: The transition from positive net assets to negative net assets within one year signals potential insolvency issues.
• Working Capital Deficit: Current liabilities (£3,673) exceed current assets (£894) in 2025, indicating a liquidity shortfall that may impair the company’s ability to meet short-term obligations.
• Limited Financial History and Micro Entity Status: As a recently incorporated micro-entity (2022), the company’s financial data is limited, restricting visibility into operational stability and trends.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, suggesting compliance with statutory requirements.
• Stable Governance: The company has an appointed director and secretary, with no indication of disqualifications or governance issues.
• Small Scale Operations: With only 2 employees on average and micro-entity reporting, the company may have lower overheads and simpler operations, which could facilitate a turnaround if financial issues are addressed.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and working capital between 2024 and 2025, including any unusual or one-off expenses, loss of contracts, or asset write-downs.
• Review cash flow statements, if available, to assess liquidity pressures and operational cash generation.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.
• Understand the business model and market conditions given the SIC code (Repair of other equipment) to assess sustainability and competitive position.
• Verify the director’s plans or actions to remedy the financial deterioration and any recent capital injections or restructuring.