THE DEVIL'S BACK LIMITED

Executive Summary

The Devil’s Back Limited is an early-stage micro-entity with a weak financial position, exhibiting negative net assets and a significant working capital deficit. The company lacks sufficient liquidity and financial resilience to support credit at this time. Close monitoring of operational cash flow and capital strengthening is essential before reconsidering credit facilities.

THE DEVIL'S BACK LIMITED - Analysis Report

Company Number: 15381933

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: DECLINE
   The company is newly incorporated (January 2024) and has filed its first set of accounts for the period ending January 2025. The balance sheet reveals a negative net asset position of £13,085 and net current liabilities of £14,904, indicating the company is insolvent on a balance sheet basis at this early stage. Current liabilities (£27,820) significantly exceed current assets (£12,916), raising concerns about the company’s ability to meet short-term obligations. The absence of audited financials and limited trading history further weakens the credit profile. Given these factors, the company does not demonstrate sufficient financial strength or liquidity to support new credit facilities at this time.

2. Financial Strength:
   The company’s fixed assets are minimal (£1,819), reflecting limited investment in long-term resources. The negative net assets and shareholders’ funds position indicate accumulated losses or funding shortfalls, which is typical for a start-up but still a credit risk. The micro-entity status means reporting requirements are minimal; thus, less financial detail is available to assess profitability or cash generation. Overall, the company’s balance sheet is weak and does not provide a cushion against adverse events or economic downturns.

3. Cash Flow Assessment:
   Current liabilities nearly double current assets, resulting in a working capital deficit of £14,904. This signals liquidity strain and potential difficulty in meeting short-term obligations as they fall due. Without clear evidence of positive operating cash flows or external funding, the company’s cash flow position is precarious. The small headcount (average 3 employees) suggests limited operational scale, which may constrain revenue generation and cash inflows.

4. Monitoring Points:

• Future trading performance and cash flow improvements, especially changes in working capital and net asset position.
• Timely filing of next accounts and confirmation statements to maintain compliance and transparency.
• Any capital injections or external funding that could strengthen liquidity and equity base.
• Management’s ability to control costs and grow revenue in the “Other sports activities” sector (SIC 93199).
• Director conduct and stability, although currently no adverse records are noted.