THE RELOCATION BASE LTD

Executive Summary

THE RELOCATION BASE LTD is a newly established micro-entity with a weak financial base, negative net assets, and minimal liquidity, reflecting an early-stage or pre-revenue status. Its current financial position and lack of operational cash flow indicate it is not yet creditworthy for lending without significant improvement or capital support. Close monitoring of trading progress and capital structure is essential before reconsidering credit facilities.

THE RELOCATION BASE LTD - Analysis Report

Company Number: 14883106

Analysis Date: 2025-07-29 19:47 UTC

1. Credit Opinion: DECLINE
   The company is newly incorporated (May 2023) and classified as a micro-entity with very limited financial history. The latest accounts show a negative net asset position of £15,692, driven by long-term liabilities of £16,558 against current assets of only £866. This indicates an undercapitalised balance sheet with low liquidity and no fixed assets as collateral. The absence of operating income or employees suggests the business is in a startup or pre-revenue phase, with uncertain cash flow generation. Given the negative shareholder funds and limited financial strength, the company currently lacks the demonstrated ability to service debt or meet commercial obligations without additional capital injection or operational progress.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Fixed assets are nil, and current assets are minimal at £866. Current liabilities appear understated or not clearly reported, but there are creditors after one year amounting to £16,558, which the company must service in the medium to long term. Net liabilities of £15,692 reflect a negative equity base, indicating the company is reliant on external funding or director support. No retained earnings or reserves exist, and no employees are engaged, suggesting limited operational activity to generate sustainable profits.

3. Cash Flow Assessment:
   With current assets of only £866 and no reported cash flow or revenues, the company’s liquidity is extremely constrained. The absence of prepayments, accrued income, or receivables limits working capital flexibility. The significant creditors due after one year represent a notable future cash outflow risk. Without operational cash inflows or equity injections, the company faces a high cash flow risk and potential inability to meet liabilities as they fall due.

4. Monitoring Points:

• Cash generation and operational revenues: Monitor for evidence of trading activity and improvement in cash flow.
• Changes in net assets and shareholder funds: Watch for capital injections or profitability improvements reducing negative equity.
• Debt servicing ability: Track creditor balances and any new borrowings to assess financial leverage.
• Director involvement and related party transactions: Given one director holds 75-100% control, monitor any related funding or guarantees.
• Filing compliance: Maintain oversight on timely accounts and confirmation statement submissions to avoid regulatory risks.