Company Number: 13040089

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: DECLINE
   The company shows persistent and increasing net current liabilities and negative net assets over four years, indicating ongoing financial distress and an inability to generate sufficient short-term liquidity. The net current liabilities worsened from -£10,400 in 2020 to -£28,242 in 2023, and net assets declined from -£9,048 to -£26,697 in the same period. This negative working capital position suggests significant cash flow pressure and an inability to meet short-term obligations without external support. Given the micro-entity status and lack of filed profit and loss details, there is little evidence of profitability or cash generation to support debt servicing. Without remedial action or capital injection, the credit risk is high.

2. Financial Strength:
   The balance sheet is weak with total liabilities exceeding assets significantly. Fixed assets are minimal and declining (£2,543 in 2022 to £1,545 in 2023), providing little collateral value. The company’s shareholders’ funds are deeply negative, reflecting accumulated losses and erosion of equity. The ongoing deficit in net current assets points to poor liquidity management and potential over-reliance on short-term creditors. Overall, the financial position is fragile and deteriorating.

3. Cash Flow Assessment:
   Current liabilities more than double current assets, resulting in a negative working capital of £-28,242 at the latest year-end. This indicates liquidity constraints and potential difficulty in meeting immediate liabilities. The absence of profit and loss data restricts full cash flow analysis, but the worsening current ratio and net asset position suggest cash outflows exceed inflows. The company may be reliant on director funding or external financing to maintain operations, which raises concerns about cash flow sustainability.

4. Monitoring Points:

• Trend in net current assets and net liabilities: Any improvement or further deterioration.
• Profitability and cash flow from operations once profit and loss accounts are filed.
• Director or third-party funding injections to support liquidity.
• Timely filing of accounts and returns to monitor ongoing compliance and financial transparency.
• Changes in management strategy or business model to improve financial health.