STACK CITY LTD

Executive Summary

STACK CITY LTD is an early-stage company with no trading activity or revenue generation to date, holding minimal net assets in prepaid expenses. The absence of cash flow and operational income results in an inability to service debt or credit facilities, presenting a high credit risk. Credit extension is not recommended until clear evidence of business activity and financial improvement emerges.

STACK CITY LTD - Analysis Report

Company Number: 13507398

Analysis Date: 2025-07-29 15:55 UTC

1. Credit Opinion: DECLINE
   STACK CITY LTD currently shows no operating turnover and no trading activity for the latest year ended July 2024, despite being active for nearly three years. The absence of revenue, fixed assets, cash, or debtors indicates the company is not generating cash flow from operations and thus lacks ability to service any debt or commercial credit obligations. The company’s net assets of £5,996 represent prepaid expenses, not real earnings or tangible assets. Without evidence of financial performance or business operations, extending credit is high risk.

2. Financial Strength:
   The balance sheet is minimal and static over three years, with net assets consisting solely of prepayments (£5,996) and no liabilities. There are no fixed or tangible assets and zero current assets like cash or receivables. Shareholders' funds equal the paid-up share capital with no retained earnings. This indicates a very weak financial position with no buffer to absorb losses or support working capital needs.

3. Cash Flow Assessment:
   Cash flow is non-existent as the company holds no cash or equivalents, no turnover, and no receivables. Net current assets are due entirely to prepaid expenses rather than liquid resources. Working capital is effectively zero. The company cannot meet short-term obligations from operational cash flows, which is a significant liquidity concern.

4. Monitoring Points:

• Turnover and operating income trends to assess initiation of trading activity.
• Cash balances and current asset composition for liquidity improvements.
• Changes in asset base or acquisition of tangible/fixed assets indicating business development.
• Director appointments or changes that may signal management restructuring or new strategic direction.
• Compliance with filing deadlines to avoid regulatory penalties.