Company Number: 14636916

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE

We Are Abide Ltd is a very recently incorporated micro-entity (incorporated February 2023) operating in the niche sectors of housing association real estate rental and holiday accommodation. The latest accounts to January 31, 2025, show a highly leveraged balance sheet with fixed assets of £477k but current liabilities of £338k due after one year and £148k short-term creditors. The net liabilities of £7,730 demonstrate negative equity despite the small share capital of £100. The company has minimal current assets (£2.3k), resulting in a working capital deficit of £145k. This signals poor liquidity and a dependence on external financing to meet obligations. The negative net assets and net current liabilities highlight financial strain and raise concerns about the company’s ability to service debt or absorb shocks. With only two employees and no audit, the financial information is limited but suggests weak financial management or early-stage investment losses. Given the short trading history, negative equity, and poor working capital position, the company currently lacks the financial strength and cash flow stability required for credit approval.

2. Financial Strength:

The company’s asset base is dominated by fixed assets (£477k), likely property or real estate-related given the SIC codes, but these are funded through significant borrowings as evidenced by creditors falling due after more than one year (£339k) exceeding current assets and resulting in net liabilities. Negative shareholders’ funds (-£7,730) indicate the business has consumed equity capital, possibly due to initial investment or operational losses. The micro-entity classification and minimal share capital imply a small equity buffer. The balance sheet shows a fragile capital structure with high leverage and limited current asset coverage of short-term liabilities. The company’s financial position is weak, with negative net assets and poor liquidity ratios.

3. Cash Flow Assessment:

The very low current assets (£2,315) compared to high short-term liabilities (£148,160) result in a negative working capital of £145,845, reflecting a liquidity shortfall. Cash on hand is minimal (£100 in prior year), pointing to tight cash flow conditions. The company’s ability to meet ongoing operational expenses and short-term creditor demands appears constrained. Without significant incoming cash flows or additional financing, the risk of payment delays or default is elevated. No data on profit or cash flow from operations is available, but the balance sheet signals likely negative operating cash flow or heavy investment outlays funded by debt. Overall, liquidity and cash flow are inadequate for supporting credit risk.

4. Monitoring Points:

• Monitor quarterly management accounts for improvements in working capital and cash flow.
• Watch creditor payment patterns for signs of distress or delayed payments.
• Track any capital injections or refinancing to improve the negative equity position.
• Review operational performance and any changes in asset utilization or valuation.
• Keep an eye on director conduct and company filings to ensure compliance remains current.