STURGESS DEVELOPMENTS LTD

Executive Summary

STURGESS DEVELOPMENTS LTD is a newly incorporated micro-entity exhibiting weak financial health with negative net assets and significant working capital deficiency. The absence of operational history and cash flow generation capacity poses a high credit risk. Immediate improvement in liquidity and capitalization would be required to consider credit approval.

STURGESS DEVELOPMENTS LTD - Analysis Report

Company Number: 15169869

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: DECLINE. The company's latest financials show negative net assets (£-10,677) and a significant working capital deficiency of £-212,557. This indicates the company is currently insolvent on a balance sheet basis. Given it was incorporated only recently (September 2023) and has no employees or trading history reported, it lacks operational track record and positive cash flows. The large current liabilities compared to minimal current assets and fixed assets raise concerns about the ability to meet short-term obligations. Without evidence of imminent capital injection or turnaround plan, credit risk is high.

2. Financial Strength: The balance sheet is weak with total liabilities exceeding assets. Fixed assets of £201,880 are overshadowed by current liabilities of £225,140. Current assets are minimal at £12,583, resulting in a negative net current asset position of £-212,557. Shareholders’ funds are negative at £-10,677 despite nominal equity reported. This suggests the company is either over-leveraged or has incurred losses that are not detailed in the micro-entity accounts. The absence of retained earnings or profit reserves further confirms weak financial footing.

3. Cash Flow Assessment: Cash flow appears constrained. The small current asset base and large current liabilities imply liquidity stress. No employees or operational data are reported, so operating cash inflows are doubtful. The negative working capital and negative net assets indicate dependence on external funding or capital injections to meet short-term obligations. No detailed cash flow statement is available, but the balance sheet position suggests limited ability to service debt or sustain operations without additional funding.

4. Monitoring Points:

• Monitor changes in working capital and current liabilities to assess liquidity improvements.
• Track capital injections or equity funding that improve net asset position.
• Review any incoming trading results or cash flow generation.
• Watch for director or shareholder loans that may support liquidity.
• Observe any overdue filings or changes in company status signaling financial distress.