THE 2K PROJECT LTD

Executive Summary

The 2K Project Ltd exhibits a weak financial position with persistent negative working capital and minimal equity, undermining its capacity to service debt. Lack of profitability data and limited liquidity suggest the company is currently unsuitable for credit extension. Close monitoring of liquidity improvements and equity strengthening is essential before reconsidering credit support.

THE 2K PROJECT LTD - Analysis Report

Company Number: 14306641

Analysis Date: 2025-07-20 17:18 UTC

1. Credit Opinion: DECLINE
   The 2K Project Ltd shows a weak liquidity position with significant net current liabilities (£114,880 in 2024) and minimal net assets (£10,199). The company operates in real estate trading but lacks evidence of profitability or cash flow generation to meet short-term obligations. The static fixed asset base (£233,000) with no growth and persistent negative working capital suggest limited operational cash inflows. Without stronger liquidity or equity support, the company appears unable to reliably service new credit facilities.

2. Financial Strength:
   The balance sheet reveals a micro-entity with fixed assets valued at £233,000 but severely strained current assets relative to current liabilities, leading to a negative working capital position. Shareholders' funds are minimal and only improved marginally from £1,131 to £10,199 over two years, indicating weak capitalization. Long-term creditors (£107,921) further constrain financial flexibility. The lack of profit and loss details hinders assessment of earnings, but the balance sheet signals financial vulnerability.

3. Cash Flow Assessment:
   Current assets (£17,235) are insufficient to cover short-term liabilities (£132,115), resulting in a working capital deficit that could impair day-to-day operations. The company’s liquidity position is a concern given the high creditor balances and no indication of cash reserves or receivables sufficient to improve cash flow. The absence of reported profits or cash flow statements raises doubts about the company’s ability to generate enough internal cash to meet debt servicing requirements.

4. Monitoring Points:

• Monitor working capital trends and any improvement in current asset levels relative to liabilities.
• Track shareholder equity growth and any capital injections to bolster net assets.
• Review future accounts for profit and cash flow data to confirm operational viability.
• Observe creditor payment terms and any signs of delayed payments or creditor pressure.
• Watch for changes in fixed asset valuations or sales that might impact liquidity.