7 DAYS EXPRESS LTD

Executive Summary

7 Days Express Ltd exhibits significant financial stress, characterized by negative net assets and reliance on director loans for funding, raising high solvency and liquidity risks. While short-term asset coverage has improved, the company’s ongoing sustainability depends heavily on continued director support and operational turnaround. Compliance with statutory filings is up to date, but further due diligence on financial and operational metrics is advisable before investment consideration.

7 DAYS EXPRESS LTD - Analysis Report

Company Number: 13123704

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: HIGH
   Justification: The company reports negative net assets and shareholders' funds (£-2,688 in 2024, improved from £-4,067 in 2023), indicating a deficit in equity. Long-term liabilities (Director’s Loan Account) amount to £37,000, exceeding current assets. Cash balance is low at £3,162, and current liabilities of £3,584 exceed cash significantly, presenting liquidity concerns. The company has operated at a loss historically and is reliant on director loans for financing, which raises solvency risk.

2. Key Concerns:

• Negative equity position with persistent net liabilities, challenging long-term solvency.
• Reliance on director’s loan account (£37,000) to finance operations suggests limited external funding and potential pressure on cash flow if director support is withdrawn.
• Low cash reserves relative to current liabilities, indicating potential liquidity stress and difficulty meeting short-term obligations.

3. Positive Indicators:

• Current assets have increased notably from £14,081 in 2023 to £27,656 in 2024, showing some growth in working capital.
• Net current assets improved from £12,331 to £24,072, indicating better short-term asset coverage of current liabilities.
• The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account, including repayment schedule and whether it is unsecured or subordinated.
• Review the company’s revenue trends, profitability drivers, and business plan to assess sustainability and potential to return to positive equity.
• Examine cash flow statements and debtor/stock turnover to evaluate liquidity management and operational efficiency.
• Confirm no undisclosed contingent liabilities or overdue payments that could exacerbate financial stress.
• Assess director’s backgrounds for any prior financial difficulties or regulatory issues, although none are apparent from current data.