SKYSIDE INTERNATIONAL LTD

Executive Summary

Skyside International Ltd is an early-stage private real estate letting company reporting a loss and negative working capital in its first financial period. While compliant with filing requirements and generating turnover, the company exhibits liquidity and operational risks typical of a startup in a capital-intensive sector. Further due diligence on debtor quality, creditor terms, and funding plans is recommended to evaluate financial sustainability.

SKYSIDE INTERNATIONAL LTD - Analysis Report

Company Number: 14633999

Analysis Date: 2025-07-29 20:07 UTC

1. Risk Rating: HIGH
   Justification: The company, incorporated in 2023, reported a net current liability position of £38,315 and an operating loss of £39,315 in its first financial period. The liabilities exceed current assets, indicating negative working capital. The company has no employees and operates in real estate letting, a capital-intensive sector, which may strain liquidity.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£166,800) exceed current assets (£128,485), signaling potential liquidity stress to meet short-term obligations.
• Operating Loss: The company incurred a loss before tax of £39,315 in its first accounting period, with minimal gross profit margin, raising concerns about operational sustainability.
• No Employees and Early Stage: With no employees and a short operating history, there is limited evidence of an established revenue stream or operational stability.

3. Positive Indicators:

• Active Status and Compliance: The company is active, not in liquidation, and has no overdue filings, indicating regulatory compliance and proper governance to date.
• Single Shareholder Control: 100% ownership and control by the director may facilitate swift decision-making and capital injections if necessary.
• Turnover Generation: Despite being newly incorporated, the company generated turnover of £468,590, showing initial market activity.

4. Due Diligence Notes:

• Verify the nature and collectability of the £84,076 trade debtors to assess cash conversion risk.
• Investigate the composition and terms of the £166,800 creditors to understand payment obligations and potential refinancing needs.
• Review business plans and funding arrangements to assess how the company intends to address ongoing losses and negative working capital.
• Confirm whether the company holds or leases real estate assets and the associated capital commitments or liabilities.
• Assess the director’s capacity and plans for financial support given the company’s early loss-making status.