Company Number: 12654443

Analysis Date: 2025-07-20 16:48 UTC

1. Credit Opinion: DECLINE
   SURGURU LTD shows weakening financial health with net liabilities of £3,770 as of June 2024, a deterioration from net assets of £1,665 the prior year. The company demonstrates a negative working capital position and a reliance on long-term creditors exceeding current asset coverage. The negative equity position and decline in net current assets indicate financial stress and heightened risk of default on obligations. Given the lack of profitability details and no audit, the credit risk is elevated and does not support approval for new credit facilities without significant mitigating information or guarantees.

2. Financial Strength:
   The balance sheet reveals tangible fixed assets of £36,867, which have declined from £49,074 the previous year, reflecting depreciation without reinvestment. Current assets are £95,728, mostly cash (£80,366), but current liabilities stand at £102,429, resulting in a negative net current assets of £6,701. Long-term creditors of £33,936 further depress net assets to negative £3,770. Shareholders’ funds have eroded from a positive £1,665 to a negative position, indicating cumulative losses. Overall, the company’s financial strength is weak with insufficient capital buffer and a deteriorating asset base.

3. Cash Flow Assessment:
   Cash holdings are relatively strong at £80,366, which is a positive liquidity indicator. However, current liabilities exceed current assets, signaling working capital challenges. Debtors have decreased from £21,386 to £15,362, which may reflect tighter credit control or reduced sales. The negative net current assets position warns of potential liquidity strain if cash outflows increase or if short-term creditors demand repayment. Without detailed cash flow statements, it is difficult to confirm operational cash generation, but the pressure from liabilities suggests potential cash flow management issues.

4. Monitoring Points:

• Net current assets and working capital trends to detect worsening liquidity
• Movements in cash balances relative to short-term liabilities
• Profitability metrics once income statements are available to assess operational viability
• Status and terms of long-term creditors to understand refinancing risks
• Director conduct and any changes in ownership or control that may affect governance
• Timely filing of accounts and returns to ensure regulatory compliance