Company Number: 12694828

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: DECLINE
   Adkins Concept Limited shows significant financial stress. The company has persistent negative net assets (shareholders' funds) of -£7,010 as at 30 June 2024, worsening from -£5,493 the prior year. This indicates liabilities substantially exceed assets, undermining the company's ability to absorb losses or service debt. Current liabilities remain high relative to current assets, suggesting liquidity constraints. The director's occupation as a driver with no apparent financial or managerial background further raises concerns about governance and credit management capability. Given these factors, the company is not currently creditworthy for new lending or extended credit without significant improvements or guarantees.

2. Financial Strength:
   Balance sheet analysis reveals net liabilities of £7,010 at the latest year end, driven by creditors falling due after more than one year (£7,819), which exceeds total current assets (£1,309). The company has minimal fixed assets and a micro-entity profile with very limited equity (£1 share capital). Negative shareholders’ funds reflect an erosion of capital and potential insolvency risk. The company’s financial trajectory is deteriorating, with net assets declining year on year since incorporation in 2020. This weak financial foundation limits the company’s resilience against downturns or unexpected expenses.

3. Cash Flow Assessment:
   Current assets of £1,309 compared to current liabilities of £7,819 indicate poor short-term liquidity and negative working capital. The drop in current assets from £2,508 to £1,309 year over year suggests cash or receivables have decreased, tightening operational cash flow. The company’s ability to meet short-term obligations is questionable, potentially leading to payment delays or defaults. Absence of cash flow statement data prevents full assessment, but balance sheet metrics alone highlight liquidity risk.

4. Monitoring Points:

• Monthly cash flow and working capital levels to detect worsening liquidity
• Timely filing of accounts and confirmation statements to ensure compliance
• Changes in creditor terms or new financing arrangements
• Any director or management changes that might improve governance
• Profitability trends and ability to generate positive cash flows
• Contingent liabilities or related party transactions affecting financial health