SKYLITE GROUP LTD

Executive Summary

SKYLITE GROUP LTD presents a fragile financial profile with negative net assets and poor liquidity, indicating significant credit risk. The company’s limited scale and escalating liabilities undermine its ability to service debt. Without clear signs of financial recovery or capital support, extending credit is not advisable at this stage.

SKYLITE GROUP LTD - Analysis Report

Company Number: 13535333

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: DECLINE
   SKYLITE GROUP LTD demonstrates a weak financial position as of the latest accounts dated 31 July 2024. The company has moved from a marginally positive net asset position (£2) in prior years to a net liability position of (£348) in 2024. Current liabilities exceed current assets by a substantial margin (£458 liabilities vs £108 assets), indicating poor short-term liquidity and working capital deficits. The absence of significant asset backing and negative equity raise concerns about the company’s ability to meet debt obligations on time. Given the micro-entity status and limited financial data, credit risk is elevated without evidence of profitability or cash inflows to support debt servicing.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial structure. The net asset value shifted from a nominal positive value in previous years to a negative £348, reflecting accumulated losses or increased liabilities. The company holds minimal fixed or current assets, with current assets of only £108 against current liabilities of £458. The shareholders’ funds have turned negative, indicating erosion of equity capital. The micro-entity classification and single employee suggest limited operational scale and financial flexibility. There is no indication of long-term assets or reserves to buffer adverse financial conditions.

3. Cash Flow Assessment:
   The working capital position is negative by £350, showing an inability to cover short-term obligations from current assets. The lack of disclosed cash or cash equivalents and liabilities nearly five times the current assets suggest liquidity stress. The company may face challenges in maintaining day-to-day operations and repaying short-term creditors without external funding or capital injection. The increase in liabilities without corresponding asset growth hints at possible funding from creditors or accrued expenses rather than positive cash inflows.

4. Monitoring Points:

• Monthly cash flow and liquidity position to detect worsening short-term funding gaps.
• Changes in current liabilities to assess reliance on creditor financing.
• Evidence of capital injections or shareholder support to restore equity and solvency.
• Filing of subsequent accounts to confirm if financial condition stabilizes or further deteriorates.
• Business activity and revenue generation improvement to support debt servicing capacity.