SUSTAINED ABILITY LTD

Executive Summary

Sustained Ability Ltd is experiencing worsening financial health marked by negative working capital and shareholders’ funds, posing a significant risk to its ability to meet credit obligations. The company’s minimal asset base and low liquidity further weaken its creditworthiness. Given these factors, credit approval is not recommended without significant mitigation or capital support.

SUSTAINED ABILITY LTD - Analysis Report

Company Number: 13148454

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: DECLINE
   Sustained Ability Ltd shows persistent net current liabilities and negative shareholders’ funds in the latest financial year, indicating a weak financial position and potential difficulty in meeting short-term obligations. The company’s working capital position has deteriorated from a modest positive position at incorporation to a net current liability of £460 at the latest year-end. Total assets less current liabilities have swung from positive £179 in 2023 to a negative £334 in 2025, signaling balance sheet erosion. Absence of profitability data limits insight into operational cash generation, but the declining equity base and negative net assets raise concerns over the company’s ability to service new or existing credit without external support or capital injection.

2. Financial Strength:
   The company’s balance sheet is fragile. Fixed assets are minimal (£126), and current assets consist solely of cash (£1,458) with no debtors reported in the latest year, suggesting no credit sales or receivables to support liquidity. Current liabilities exceed current assets, resulting in a negative working capital position. Shareholders’ funds have declined sharply from £2,438 at inception to a negative £434, reflecting accumulated losses or capital erosion. The company remains small, with limited capital (£100 share capital) and a single employee, which constrains operational scale and financial flexibility.

3. Cash Flow Assessment:
   Cash balances remain low and relatively unchanged (£1,403 in 2023 to £1,458 in 2025), but the increase in current liabilities indicates growing short-term obligations. The lack of trade debtors suggests limited ongoing business or delayed invoicing. Negative net current assets imply reliance on short-term borrowing or director loans to meet immediate liabilities. There is no evidence of cash inflows strong enough to improve working capital or restore balance sheet strength. Overall, liquidity appears strained, risking payment delays or default.

4. Monitoring Points:

• Track net current asset position and liquidity ratios closely for any further deterioration.
• Monitor trading activity and turnover to assess cash inflows and debtor balances.
• Review any director or shareholder funding injections that may shore up capital.
• Observe filing compliance and any changes in director or secretary appointments that might indicate governance issues.
• Watch for any indications of late payments or creditor actions that might signal distress.