ABCL REVIEW LIMITED

Executive Summary

ABCL Review Limited shows a marked decline in financial health over the latest year, with net assets nearly depleted and current assets significantly reduced. The company’s liquidity is constrained, and its capital base is minimal, raising concerns about its ability to meet financial obligations. Without further assurances or stronger financial backing, credit facilities are not recommended at this time.

ABCL REVIEW LIMITED - Analysis Report

Company Number: 13834024

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: DECLINE
   ABCL Review Limited demonstrates a significant deterioration in financial position between the 2023 and 2024 accounting years. The company’s net assets have shrunk drastically from £5,703 to just £211, indicating severe erosion of capital. Additionally, net current assets have decreased from £5,701 to only £334, suggesting strained liquidity. This sharp decline implies potential operational or revenue issues. The company is a micro-entity with a single director who also acts as secretary and major shareholder, which raises concerns about limited management oversight and potential concentration risk. Given the weak balance sheet, limited cash resources, and lack of audited accounts, the company currently lacks the financial strength to comfortably service debt or absorb economic shocks. Credit approval would be imprudent without substantial mitigating factors or guarantees.

2. Financial Strength:
   The balance sheet reveals very low fixed assets (£377 in 2024) and sharply reduced current assets (£4,890 in 2024 vs £15,210 in 2023). Current liabilities remain stable around £9,500, causing net current assets to fall drastically. The company recorded prepayments of £5,000 in 2024, which may artificially inflate current assets but does not equate to readily available cash. Net assets of £211 are minimal and represent a thin equity buffer. The reduction in capital and reserves from £5,703 to £211 signals accumulated losses or withdrawals. Overall, the financial position is fragile with minimal tangible cushion to absorb losses or fund growth.

3. Cash Flow Assessment:
   The company’s liquidity position is tight. Current liabilities exceed £9,500 while current assets have dropped to under £5,000, resulting in a marginal positive net working capital of £334. The presence of £5,000 prepayments indicates some cash may be tied up in advance payments rather than available for immediate obligations. The director’s loan account shows advances of £1,760 owed by the director to the company, which was repaid post-year end, indicating some reliance on director support for cash flow. The absence of an audit and limited disclosure on profit and loss restricts full cash flow visibility, but the declining working capital and low equity suggest constrained operational cash flows.

4. Monitoring Points:

• Monthly liquidity ratios and cash flow forecasts to track short-term repayment capacity.
• Trends in current liabilities and any overdue creditor payments.
• Director loan account activity and any further reliance on related party advances.
• Profitability indicators once P&L data is available to assess business viability.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.
• Any changes in ownership or management that might affect control or financial stewardship.