SUMMER HOUSE LONDON LIMITED

Executive Summary

SUMMER HOUSE LONDON LIMITED is currently financially distressed, with significant negative net assets and heavy reliance on director loans for funding. The company lacks liquidity and operational cash flow, posing a high credit risk. Without material improvements in financial position or business performance, extending credit is not advisable at this time.

SUMMER HOUSE LONDON LIMITED - Analysis Report

Company Number: 13917538

Analysis Date: 2025-07-29 20:33 UTC

1. Credit Opinion:
   DECLINE. SUMMER HOUSE LONDON LIMITED exhibits significant financial distress evidenced by persistent negative net assets and net current liabilities exceeding £275k over the last two financial years. The company is highly leveraged, relying almost entirely on director loans (£275,537 in 2024) with minimal cash holdings (£243), indicating poor liquidity and an inability to meet short-term obligations without external support. The absence of operational employees and no reported revenue or profit further undermines the capability to service debt or generate sustainable cash flow. Without a clear turnaround plan or additional capital injection, credit risk is high.

2. Financial Strength:
   The balance sheet shows severe weakness. Net assets and shareholders’ funds are deeply negative (£-277,894 as of 28 Feb 2024), driven by current liabilities exceeding current assets by a large margin. The company has no fixed assets disclosed, and almost no cash, relying solely on director loans as liabilities. The capital structure is fragile with only £100 share capital and accumulated losses exceeding £275k. This negative equity position indicates insolvency risk and poor financial resilience.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash balances are negligible (£243), and current liabilities are large and falling due within one year (£278,137). The company does not appear to generate operating cash flows (no employees or reported revenues). Reliance on director loans suggests that funding is not coming from operational sources. Working capital is deeply negative, indicating the company cannot meet short-term obligations without continual external or related-party funding.

4. Monitoring Points:

• Track changes in net current assets and net liabilities to detect any improvement in liquidity.
• Monitor director loans and any new financing arrangements or capital injections.
• Review any operational developments that could lead to revenue generation or reduce losses.
• Watch for formal insolvency proceedings or late filing of accounts which could signal distress.
• Confirm ongoing compliance with filing deadlines and any changes in company status.