SPRINGFINCH LTD

Executive Summary

Springfinch Ltd shows a high risk profile primarily due to its negative net assets and significant working capital deficit, raising solvency and liquidity concerns. While statutory filings are current and fixed assets are stable, the lack of operational activity and negative equity warrant close scrutiny. Further due diligence on asset valuation and business viability is recommended before considering investment exposure.

SPRINGFINCH LTD - Analysis Report

Company Number: 13888963

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   Springfinch Ltd exhibits a concerning financial position with persistent net liabilities and negative shareholders' funds. The company’s current liabilities significantly exceed its current assets, indicating considerable short-term liquidity risk. The absence of employees and minimal current assets raise doubts about operational sustainability.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are negative (£-10,460), showing the company’s liabilities exceed its assets, which signals potential solvency issues.
• Severe Working Capital Deficit: Net current liabilities stand at approximately £128k, indicating the company may struggle to meet short-term obligations without additional financing.
• Lack of Operational Activity: No employees reported and negligible current assets (£6,022) suggest limited ongoing business operations or revenue generation to support obligations.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, demonstrating compliance with statutory requirements and good governance practices in this regard.
• Stable Fixed Asset Base: Fixed assets remain stable around £400k, which may represent real estate holdings consistent with the company’s SIC codes in real estate management and trading.
• Clear Ownership and Control: A single corporate entity (Rosetanager Ltd) holds full control, which may simplify decision-making and potential recapitalization efforts.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets (£401k) to confirm realizable value and potential to cover liabilities.
• Review financing arrangements related to the significant long-term creditors (£283k) to understand repayment terms and risk of default.
• Assess business model viability given zero reported employees and minimal current assets, including revenue streams and future trading prospects.
• Confirm the reason for persistent negative net assets since incorporation and any plans by shareholders to address the deficit.
• Validate absence of audit due to micro-entity status and consider obtaining more detailed financial information if available.