Company Number: 13920980

Analysis Date: 2025-07-29 12:11 UTC

1. Credit Opinion: DECLINE
   THE SCENTED VAULT LTD exhibits significant financial weakness with net current liabilities of £776 at the year-end 2024, worsening from £314 the prior year. The company's liabilities considerably exceed its current assets, indicating an inability to meet short-term obligations from existing liquid resources. The lack of employees and minimal asset base suggest limited operational capacity and revenue generation. Without evidence of positive cash flow, profitability, or external financial support, the firm poses a high credit risk. Approval of credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows a micro-entity with minimal current assets (£61) against current liabilities of £837, resulting in negative net current assets of £776. Total net assets stand at a negative £776, reflecting accumulated losses or funding shortfalls. There are no fixed assets or significant investments, and shareholder funds mirror this negative net asset position. The company’s financial position has deteriorated year-over-year, signaling an inability to build equity or retain earnings.

3. Cash Flow Assessment:
   Current assets are almost negligible and insufficient to cover short-term liabilities, indicating poor liquidity and working capital deficiency. The company’s negative working capital position suggests reliance on external financing or delayed payments, raising concerns about ongoing operational cash flow adequacy. The absence of employees hints at very limited or no trading activity, further constraining cash generation.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity position
• Evidence of revenue generation or operational activity (e.g., hiring employees, sales growth)
• Timely settlement of current liabilities to avoid default or insolvency procedures
• Any capital injections or financial support from the sole shareholder or external parties
• Compliance with filing deadlines and transparency in financial disclosures