SPA4CARS LTD

Executive Summary

SPA4CARS LTD is a newly formed micro-entity with minimal financial resources and no operational track record, resulting in a high-risk profile for credit extension. The company’s balance sheet shows very limited assets and no liabilities, with negligible working capital and no demonstrated ability to generate cash flow. Credit approval is not recommended at this stage; close monitoring of trading performance and financial position is essential before reconsidering credit facilities.

SPA4CARS LTD - Analysis Report

Company Number: 15114269

Analysis Date: 2025-07-20 11:33 UTC

1. Credit Opinion: DECLINE

SPA4CARS LTD is a newly incorporated micro-entity with minimal financial history and very limited asset base (£867 total net assets). The company has no current liabilities but also no meaningful current assets or working capital to support operations or debt service. With zero employees and no reported turnover or cash flow data, the ability to generate revenue or service any credit facility is unproven and highly uncertain. The directors are very young and have no disclosed industry experience related to the company's classification, which adds to management risk. Given the absence of financial track record, operating results, and minimal capitalization, extending credit at this stage would pose a high risk.

2. Financial Strength:

The balance sheet as of 30 September 2024 shows fixed assets of £747 and current assets of £120, with no liabilities, resulting in net assets and shareholders’ funds of £867. This is an extremely modest capital base with no working capital cushion beyond £120. The company’s micro-entity reporting status and lack of audit further limit transparency. There are no provisions, accrued liabilities, or long-term debts, indicating no financial leverage but also no resources to absorb potential losses or fund growth.

3. Cash Flow Assessment:

No cash flow statements or turnover figures are available. The reported current assets of £120 likely represent negligible cash or equivalents. With no employees and no liabilities, the operating cash flow is effectively unknown but likely minimal or negative given startup costs. The company’s liquidity position is weak and insufficient to cover operational expenses or debt service without external funding injections.

4. Monitoring Points:

• Track initial trading performance and revenue generation once the company begins operations.
• Monitor any changes in working capital, especially current assets and liabilities.
• Review directors’ background and any changes in management or ownership to assess capability.
• Watch for timely filing of accounts and confirmation statements to maintain compliance.
• Evaluate any new financing or capital injections that may improve financial strength.