STOHOS LTD

Executive Summary

Stohos Ltd is a newly incorporated micro-entity with no trading activity and persistent negative net current assets, reflecting poor liquidity and financial weakness. The company’s inability to cover short-term liabilities combined with the lack of operational cash flow leads to a credit recommendation to decline. Close monitoring of future trading status and capital structure changes is advised before reconsidering credit exposure.

STOHOS LTD - Analysis Report

Company Number: 14375737

Analysis Date: 2025-07-29 14:58 UTC

1. Credit Opinion: DECLINE
   Stohos Ltd shows persistent negative net current assets and shareholders’ funds, indicating a weak financial position and inability to meet short-term liabilities from current assets. The company has been losing net working capital over its short history, and there is no evidence of trading activity or revenue generation (classified as dormant). The directors have not demonstrated financial resilience or growth, and the company’s financial trajectory is negative. Given these factors, extending credit would carry a high risk of non-repayment.

2. Financial Strength:
   The balance sheet reveals a micro-entity with very limited assets (£100 current assets) and increasing current liabilities (£1,398 in 2024 vs £786 previously), resulting in net current liabilities of £1,298. The negative shareholders’ funds reflect accumulated losses or initial capital deficits. There are no fixed assets, and the company has not produced any profit or cash inflows to strengthen equity. This weak financial structure undermines the company’s capacity to support debt or absorb financial shocks.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets significantly, liquidity is inadequate to cover short-term obligations. The company’s working capital deficit suggests ongoing cash flow constraints. The absence of trading activity (dormant SIC classification) implies no operational cash inflows, increasing reliance on external funding or shareholder support to meet liabilities. This liquidity position is not supportive of new credit facilities.

4. Monitoring Points:

• Monitor changes in current liabilities and assets to detect any improvement in liquidity.
• Watch for filing of accounts indicating commencement of trading and revenue generation.
• Track any capital injections or shareholder loans that might improve net assets and working capital.
• Watch director activity and any changes in control or strategy that could affect financial health.