ST19 LIMITED

Executive Summary

ST19 Limited is financially fragile with negative working capital and shareholders’ funds, driven by growing liabilities and limited cash inflows. The company shows no current ability to service debt or improve liquidity sustainably. Credit approval is not recommended without substantial financial restructuring or capital support.

ST19 LIMITED - Analysis Report

Company Number: 13971419

Analysis Date: 2025-07-20 14:57 UTC

1. Credit Opinion: DECLINE – ST19 Limited presents significant credit risk due to persistent negative net current assets and shareholders' funds over the last two years. The company shows a deficit in working capital and equity with no sign of profitability or positive cash flows to cover liabilities. The increase in current liabilities, largely owed to related parties, exacerbates the risk. Without a clear plan to improve liquidity or equity, the company’s ability to service debt or meet commercial obligations is doubtful.

2. Financial Strength: The balance sheet reveals negative net current assets of £1,637 at the end of 2023, deteriorating from negative £800 in 2022. Shareholders' funds have further declined to -£1,637, reflecting accumulated losses. The company holds minimal fixed assets and relies on a small cash balance (£24,559) insufficient to offset its creditors (£43,880). The increase in trade and other creditors—especially related party payables—raises concerns about financial sustainability. The company remains a micro-entity but is financially weak with no retained earnings.

3. Cash Flow Assessment: Cash on hand is modest but improved from zero in 2022, at £24,559, yet current liabilities exceed this by almost double. Debtors are minimal (£248), indicating limited incoming cash flows from operations. The increase in stock/work in progress (£17,436) ties up working capital and may indicate ongoing projects, but without corresponding cash inflows, this creates liquidity pressure. The lack of employees suggests limited operating activity or outsourcing. Overall, cash flow is constrained, with a negative working capital cycle that challenges short-term debt servicing.

4. Monitoring Points:

• Track quarterly cash flow statements to assess operational cash generation and working capital management.
• Monitor related party balances to understand any informal financing arrangements and repayment plans.
• Watch for improvements in net current assets and shareholders’ funds via profit generation or capital injections.
• Review progress on project completions and conversion of work in progress into revenue.
• Confirm timely filing of accounts and returns to avoid regulatory penalties.