Company Number: SC689422

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: DECLINE
   Toor Limited presents weak creditworthiness due to persistent negative net assets and net current liabilities over multiple years, indicating ongoing funding shortfalls. The absence of current assets in the latest year and increasing short-term creditors relative to available liquid assets signals poor liquidity and limited capacity to service new or existing debt. The company does not employ staff and appears inactive operationally, which raises concerns about its revenue generation and cash flow sustainability. Given these factors, approval of new credit facilities is not advisable without significant improvement in financial position or stronger external guarantees.

2. Financial Strength:
   The balance sheet reveals net liabilities of £624 at the last reporting date (29 Feb 2024), worsening from £553 the prior year. Current liabilities (£624) exceed current assets (nil), leading to negative working capital. Shareholders’ funds are negative, reflecting accumulated losses and insufficient equity capital (only £100 share capital). The micro-entity size and lack of fixed assets suggest limited tangible security. This weak financial position indicates the company is undercapitalized and has been reliant on creditor funding, which is unsustainable.

3. Cash Flow Assessment:
   The company shows no reported current assets such as cash or receivables at the latest year-end, implying no readily available liquid resources. Negative net current assets demonstrate a working capital deficit that could impair day-to-day operational liquidity. The absence of employees and the nature of the business (sale of motor vehicles) suggest minimal operational activity or income generation, further stressing cash flow concerns. Without positive cash inflows or capital injections, the company’s ability to meet short-term obligations is compromised.

4. Monitoring Points:

• Monitor upcoming filings to assess any improvements in cash balances or reduction in liabilities.
• Watch for changes in ownership or director appointments that might signal restructuring or capital support.
• Review any evidence of operational activity resuming or revenue generation to improve cash flow.
• Track creditor behavior for signs of pressure or enforcement actions due to unpaid debts.