SPRINGTYBAN LIMITED

Executive Summary

Springtyban Limited is a newly formed micro entity with a weak financial position characterized by negative net assets and a working capital deficit. The company currently lacks sufficient liquidity to meet short-term liabilities, rendering it unsuitable for credit facilities at this stage. Close monitoring of liquidity improvements and capital strengthening is essential before reconsidering credit exposure.

SPRINGTYBAN LIMITED - Analysis Report

Company Number: 15408844

Analysis Date: 2025-07-29 14:37 UTC

1. Credit Opinion: DECLINE
   Springtyban Limited shows a weak financial position with net liabilities of £4,766 and negative net current assets of £5,711 at the end of its first financial year. The company is a newly incorporated micro entity with minimal fixed assets and current assets insufficient to cover current liabilities. The negative working capital and net liabilities indicate limited ability to meet short-term obligations. Given the early stage of the company and its current financial weakness, granting credit facilities would be high risk without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet reveals total assets of only £8,915 (£945 fixed and £7,970 current) against current liabilities of £13,681, producing negative net assets and shareholders’ funds of £4,766. The company is operating with a single employee/director and minimal capitalization. There is no retained earnings or profit reserve to support operations. Overall, the financial strength is poor, showing initial losses or investment outflows exceeding capital contributions.

3. Cash Flow Assessment:
   Negative net current assets point to liquidity pressures, as current liabilities exceed current assets by £5,711. This implies that the company may struggle to settle short-term debts when they fall due. The absence of cash or equivalents data limits detailed cash flow insight, but the working capital deficit strongly suggests cash flow challenges. The company’s ability to generate positive operational cash flow is untested given its recent formation.

4. Monitoring Points:

• Improvement in net current assets and liquidity position
• Progression to positive net assets and shareholders’ funds through profitability or capital injection
• Timely filing of subsequent accounts and confirmation statements
• Any increase in trade creditors or delayed payments that could signal worsening cash flow
• Changes in director or ownership structure that might impact governance or financial stewardship