Company Number: 13112975

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion:
   DECLINE. A GROUP SUFFOLK LTD shows an extremely weak financial position with net assets of zero and liabilities equal to total assets. The company is heavily leveraged with fixed assets of £165,000 fully offset by creditors of the same amount. Working capital is minimal and current liabilities exceed current assets by a large margin, indicating poor liquidity. There is no evidence of profitability or equity injection to support debt repayment. The micro-entity classification and minimal operational scale (1 employee) also limit financial flexibility. Without significant improvement or external support, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet reveals fixed assets of £165,000 financed entirely by long-term creditors (£166,250), resulting in no net equity. Current assets are negligible (£1,250) compared to current liabilities (£166,250), giving a net current asset position of only £1,250, which is insufficient for operational needs. Shareholders’ funds stand at zero, indicating no retained earnings or capital reserves. The company’s financial structure is highly leveraged and lacks a buffer to absorb shocks or downturns.

3. Cash Flow Assessment:
   Current assets largely consist of minimal cash or receivables with no indication of liquid reserves. The working capital position is almost neutral but heavily dependent on creditor funding. Without a profit and loss account available, cash generation from operations cannot be confirmed, but the static asset and liability figures over four years suggest stagnation rather than growth. The company’s ability to meet short-term obligations and service debt is questionable given the tight liquidity.

4. Monitoring Points:

   • Track changes in net assets and equity injection to improve solvency.
   • Monitor current ratio and net current assets as liquidity indicators.
   • Review any incoming cash flow or profitability data to assess operational improvement.
   • Keep watch on director and management decisions regarding asset sales or refinancing.
   • Watch for any overdue filings or signs of financial distress such as late payments or creditor actions.