THUGJE LTD

Executive Summary

Thugje Ltd’s financial position has deteriorated significantly, with reduced assets and net equity, and the company has ceased trading preparing for dissolution. The weakened balance sheet and absence of ongoing operations present a high credit risk, making credit approval unsuitable. Close monitoring of the winding-up process and creditor settlements is advised.

THUGJE LTD - Analysis Report

Company Number: 13147078

Analysis Date: 2025-07-20 18:38 UTC

1. Credit Opinion: DECLINE
   Thugje Ltd demonstrates a sharply deteriorated financial position over the most recent period. Net assets have fallen from £7,002 in January 2023 to only £2,104 by July 2024. This decline is largely driven by a substantial reduction in debtors (from £8,244 to £1,465) and current assets overall, indicating a significant drop in business activity or collection issues. The company has also ceased trading and is preparing for dissolution, which suggests it is no longer operational and unable to generate future cash flows to service debt. The very low share capital (£1) and absence of tangible assets further weaken the financial resilience. Given these factors, extending credit would expose the bank to high risk of non-repayment.

2. Financial Strength:
   The balance sheet shows very limited financial resources. Current assets have dropped drastically to £3,516, with cash holdings modest at £2,051. Current liabilities stand at £1,412, leaving positive but minimal net current assets of £2,104. There are no fixed assets remaining after disposals. The company's retained earnings have declined sharply, reflecting operational losses or write-downs. The capital structure is minimal with only £1 in share capital, indicating negligible equity buffer. Overall, the company lacks the financial strength to absorb shocks or support lending.

3. Cash Flow Assessment:
   Cash flow appears constrained. Although cash increased from £747 to £2,051, the large decrease in debtors implies reduced sales or collection problems. Current liabilities remain significant relative to current assets, though manageable at present. The presence of small borrowings (£362) is noted but not excessive. However, the company’s cessation of trading and plans for dissolution indicate it cannot generate sustainable operating cash flows. Liquidity is therefore weak and transient.

4. Monitoring Points:

• Confirmation of company dissolution timeline and any outstanding obligations.
• Status of debtor collections and any potential recoveries.
• Any contingent liabilities or creditor claims during wind-down.
• Director’s actions regarding final settlements and creditor notifications.