SUNRAYS PROPERTY UK LTD

Executive Summary

Sunrays Property UK Ltd exhibits critical liquidity issues, with net current liabilities exceeding current assets by over £150k and cash reserves nearly depleted. The company’s financial position has deteriorated significantly in the latest year, raising concerns about its ability to meet short-term obligations and service debt. Without a clear recovery in cash flow or capital support, credit facilities should be declined.

SUNRAYS PROPERTY UK LTD - Analysis Report

Company Number: 14364420

Analysis Date: 2025-07-20 15:39 UTC

1. Credit Opinion: DECLINE. Sunrays Property UK Ltd shows a severely weakened short-term liquidity position with net current liabilities of £152,250 at the latest year-end. The company’s inability to cover current liabilities with current assets indicates a high risk of payment default on short-term obligations. The small equity base of £358 and a significant increase in trade and other creditors indicate funding stress. Without evidence of incoming cash flows or additional capital injection, the company is not currently capable of servicing debt or commercial credit facilities.

2. Financial Strength: The balance sheet shows a fixed asset of £152,608 in property but minimal current assets (£1,887 cash only) and no receivables for the current year. The substantial rise in current liabilities from £100,102 to £154,137 in one year, mostly trade creditors, alongside the erosion of net current assets into a large deficit, points to deteriorating financial health. Shareholders’ funds remain very low, suggesting limited capital buffer to absorb losses or fund operations.

3. Cash Flow Assessment: Cash reserves have drastically declined from £85,701 to £1,887, highlighting a critical liquidity squeeze. Absence of debtors in the latest year suggests little incoming cash from normal business operations. The company’s working capital deficit of £152,250 means it cannot meet short-term liabilities from liquid assets, indicating an urgent cash flow problem that threatens operational continuity.

4. Monitoring Points:

• Monitor changes in current liabilities, especially trade creditors, to assess if the company can renegotiate payment terms or reduce creditor balances.
• Track cash balances and debtor collections closely to confirm any improvement in liquidity.
• Watch for capital injections or shareholder loans that might improve equity and working capital.
• Review any incoming revenue streams or contracts that might generate positive cash flow.
• Observe director actions and filings for signs of restructuring or insolvency risk.