Company Number: 13888087

Analysis Date: 2025-07-20 16:38 UTC

1. Credit Opinion: DECLINE
   Abberley Landscapes Limited presents significant credit risk due to its negative working capital position and declining net assets. The company’s current liabilities substantially exceed current assets by £29,357 as of 28 February 2024, worsening from £16,877 the previous year. This liquidity shortfall indicates difficulty in meeting short-term obligations without additional financing. The company also relies heavily on hire purchase contracts secured against fixed assets, which limits financial flexibility. Given the short operational history (incorporated 2022) and lack of profitability disclosures, extending credit would be high risk without substantial guarantees or collateral.

2. Financial Strength: Weak
   The company’s net assets have declined from £4,925 in 2023 to £1,205 in 2024, reflecting erosion of equity and potential losses. Fixed assets have increased due to additions of plant and motor vehicles (£78,615 gross), financed primarily through secured hire purchase debts (£22,456 current secured and £15,913 non-current secured). The company’s capital structure shows minimal equity (£100 share capital) and a small retained reserve (£1,105), indicating limited buffer to absorb operational losses.

3. Cash Flow Assessment: Constrained
   Cash balances have dropped significantly from £13,442 to £1,608 year-on-year, while debtors also declined markedly. The negative net current assets and high trade and other creditors (£31,332) suggest cash outflows exceed inflows, impairing liquidity. The company’s reliance on hire purchase financing to acquire assets points to cash flow pressures. There is no indication of strong cash flow generation from operations or profitability to support debt servicing.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to detect further deterioration in working capital.
• Cash flow from operations in future accounts to assess ability to fund debt and operating expenses.
• Changes in hire purchase debt levels and asset values to monitor financial leverage and security coverage.
• Profitability metrics once profit and loss accounts are available to evaluate earnings sustainability.
• Directors’ actions to improve capital structure or secure additional funding to stabilize finances.