SUP LASS PADDLE ADVENTURES LTD

Executive Summary

Sup Lass Paddle Adventures Ltd is a newly formed micro-entity with an early-stage financial profile characterized by negative net assets and working capital deficits. The company currently lacks financial strength and liquidity to support debt obligations, presenting a high credit risk. Credit facilities should be declined until there is evidence of operational cash flow and balance sheet improvement.

SUP LASS PADDLE ADVENTURES LTD - Analysis Report

Company Number: 14719261

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE
   Sup Lass Paddle Adventures Ltd is a very recently incorporated micro-entity (March 2023) with limited operating history. The latest financials to March 2024 show negative net current assets and net liabilities of £5,516, indicating an immediate working capital shortfall and insolvency on a balance sheet basis. The absence of employees and minimal fixed assets suggest the company is just starting operations and currently lacks financial strength to service debt or absorb shocks. Without evidence of external funding or positive cash flow, extending credit at this stage involves high risk.

2. Financial Strength:
   The balance sheet reveals total fixed assets of £17,023 but current liabilities of £22,539. The resulting net current liabilities of £22,539 and negative net assets of £5,516 imply the company is technically insolvent. Shareholders’ funds are negative, reflecting accumulated losses or start-up costs not yet offset by earnings or capital injections. The micro-entity status limits disclosure, but there is no indication of retained earnings or reserves. The financial position is fragile and dependent on shareholder support or future profitability.

3. Cash Flow Assessment:
   With no employees and minimal assets, cash flow generation is likely very limited. The negative net current assets imply working capital deficits, meaning the company may struggle to meet short-term obligations without additional capital input. The accounts do not provide cash flow statement details, but the liabilities exceed current assets, signaling liquidity pressure. The business appears to be in a pre-revenue or early investment stage, requiring careful monitoring of cash burn and funding sources.

4. Monitoring Points:

• Track subsequent filings for improvements in net current assets and profitability.
• Monitor director funding or loans to cover working capital deficits.
• Watch for onset of revenues and cash flows from operations.
• Review any changes in liabilities or creditor terms that may impact liquidity.
• Assess the director’s ability to inject further capital or secure financing.